Supreme Court Orders Central Empowered Committee to Identify Mining Leases Operating in Violation of Environmental and Forest Laws in Odisha. Court Finds Prima Facie Case of Illegal Mining and Directs Preparation of List of Defaulting Lessees for Interim Relief Under Article 32.

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Case Note & Summary

The writ petitions under Article 32 of the Constitution were filed by Common Cause and Prafulla Samantra, alleging rampant illegal mining in the Keonjhar, Sundergarh, and Mayurbhanj districts of Odisha. The petitioners contended that lessees were conducting iron ore and manganese ore mining without mandatory environmental and forest clearances, causing severe environmental degradation and adversely affecting tribal communities. The Central Empowered Committee (CEC), previously appointed by the Court in the T.N. Godavarman case, was directed to investigate. The CEC submitted interim and final reports highlighting violations and recommending measures such as requiring environmental clearance, consent to operate, approved mining plan, and net present value (NPV) deposits for mining in forest and non-forest land, including deemed forest areas (DLC). The Court had earlier made some of these recommendations binding for mining operations in Orissa and Goa. The reports also noted that substantial forest areas had been included in leases without necessary approvals under the Forest (Conservation) Act, 1980. The petitioners sought a writ of mandamus to immediately stop illegal mining, terminate non-compliant leases, direct an investigation by an SIT or CBI into collusion between private companies and public officials, and recover illegally accumulated wealth under Section 21 of the Mines and Minerals (Development and Regulation) Act, 1957. During the proceedings, the Court directed the CEC to prepare a list of lessees operating without requisite clearances for the purpose of passing an interim order. The Court also rejected a preliminary objection to the maintainability of the writ petition. While the final outcome is not detailed in the present excerpt, the Court passed an interim order on 16 May 2014 based on the CEC's final report, the substance of which was to identify defaulting lessees in the affected districts. The case underscores the judicial oversight exercised over illegal mining and enforcement of environmental law compliance, with the Supreme Court utilizing the CEC as an expert body to gather facts and recommend interim measures.

Headnote

A) Environment Law - Mining Operations - Requisite Clearances - Mines and Minerals (Development and Regulation) Act, 1957; Forest (Conservation) Act, 1980; Environment (Protection) Act, 1986; Mineral Concession Rules, 1960, Rule 24-A(6) - The Central Empowered Committee recommended that mining operations should be permitted only if the lessee has environmental clearance, consent to operate from the State Pollution Control Board, approved mining plan, and NPV deposited in the Compensatory Afforestation Fund; mining in forest land additionally requires approval under the Forest (Conservation) Act/Temporary Working Permission; DLC forest areas require NPV deposit and mining in virgin DLC land requires FC Act permission; the Court had earlier made such conditions binding in Orissa and Goa. (Paras 4, 9)

B) Interim Orders - Supreme Court - Writ Petition - Article 32 - While issuing notice on writ petition alleging illegal mining, the Court directed the CEC to prepare a list of lessees operating without clearances under the Environment (Protection) Act, 1986 and Forest (Conservation) Act, 1980, for consideration of an interim order. (Para 9)

C) Criminal/Civil Liability - Mines and Minerals (Development and Regulation) Act, 1957, Sections 21(1), 21(5) - The petitioners sought recovery of illegally accumulated wealth and launch of prosecutions under Section 21 of the MMDR Act, 1957 for violation of mining laws. (Para 8 prayer (e))

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Issue of Consideration

Whether mining lessees in Odisha were operating without statutory clearances under the Forest (Conservation) Act, 1980 and Environment (Protection) Act, 1986, and if so, whether interim orders should be passed to stop illegal mining and if investigation should be directed

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Final Decision

Decision not clearly stated

Law Points

  • Legal points not extracted
  • Mining operations require environmental clearance
  • forest clearance
  • consent to operate
  • approved mining plan
  • and NPV deposit
  • illegal mining liable for prosecution under MMDR Act
  • Section 21
  • Court may suo motu or on petition direct investigation and interim measures to prevent environmental damage
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Case Details

2017 LawText (SC) (08) 160

Writ Petition (Civil) No. 114 of 2014; Writ Petition (Civil) No. 194 of 2014

2026-08-01

Madan B. Lokur

Citation not available

Mr. Venugopal

Common Cause, Prafulla Samantra and Another

Union of India and Others

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Nature of Litigation

Writ petition under Article 32 of the Constitution seeking enforcement of environmental laws and directions to stop illegal mining in Odisha

Remedy Sought

Petitioners sought mandamus to stop illegal mining, terminate violating leases, direct CBI/SIT investigation, recover illegally accumulated wealth under MMDR Act, and enforce compliance with Forest (Conservation) Act and Environment (Protection) Act

Filing Reason

Allegations of large-scale illegal mining of iron ore and manganese ore in Keonjhar, Sundergarh, and Mayurbhanj districts of Odisha without requisite environmental and forest clearances, causing environmental degradation and harm to tribals

Previous Decisions

Interim and final reports of the Central Empowered Committee; earlier orders directing compliance with CEC recommendations; report of Justice M.B. Shah Commission

Issues

Whether the mining lessees were operating without mandatory environmental and forest clearances? Whether the Court should impose an interim order to stop illegal mining? Whether an investigation by SIT/CBI is warranted into illegal mining and collusion?

Submissions/Arguments

The CEC recommended that mining operations be allowed only after obtaining environmental clearance, consent to operate, approved mining plan, and NPV deposit; forest land mining requires FC Act approval and TWP; DLC forest land requires NPV and FC Act permission. The applicant M/s Sarda Mines Private Limited objected to furnishing information to CEC citing pending matters before the High Court. The petitioners contended that many lessees were operating without clearances and sought immediate judicial intervention to halt illegal mining and direct investigation.

Ratio Decidendi

Ratio not explicitly mentioned

Judgment Excerpts

The facts revealed during the hearing of these writ petitions filed under Article 32 of the Constitution suggest a mining scandal of enormous proportions and one involving megabucks. No forest land can be leased/assigned without first obtaining the approval under the FC Act. mining operations should be permitted to be undertaken in the non forest area of the mining lease only if (i) it has the requisite environmental clearance; (ii) it has the consent to operate from the State Pollution Control Board under the Air and Water Acts; (iii) Mining Plan is duly approved by the competent authority; and (iv) the NPV for the entire forest falling within the mining lease is deposited in the Compensatory Afforestation Fund.

Procedural History

In 2009, Rabi Das filed an application in the pending T.N. Godavarman case seeking directions for a fact-finding study of illegal mining in Odisha. The Court directed the Central Empowered Committee (CEC) to file a report. The CEC submitted an interim report on 26.04.2010 with recommendations on environmental and forest clearances, which the Court directed the State to respond to. On 16.09.2013, the Court called for a comprehensive report from CEC. Some lessees resisted providing information, but the Court directed the CEC to submit its final report on forest and environmental issues by 13.01.2014. Based partly on the report of Justice M.B. Shah Commission, Common Cause filed W.P. (C) No. 114 of 2014 seeking to halt illegal mining. On 21.04.2014, the Court issued notice and directed the CEC to prepare a list of lessees operating without clearances for consideration of an interim order. The CEC submitted its final report on 25.04.2014, and on 16.05.2014, the Court passed an interim order.

Acts & Sections

  • Mines and Minerals (Development and Regulation) Act, 1957: Section 21(1), Section 21(5)
  • Forest (Conservation) Act, 1980:
  • Environment (Protection) Act, 1986:
  • Mineral Concession Rules, 1960: Rule 24-A(6)
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