Case Note & Summary
These writ petitions under Article 32 of the Constitution brought to light a massive mining scandal in the Keonjhar, Sundergarh, and Mayurbhanj districts of Odisha, where lessees were alleged to have rapaciously mined iron and manganese ore in gross violation of environmental and forest laws, causing widespread destruction of forests and environment and untold misery to tribal communities. The proceedings originated from an earlier application filed in 2009 by a newspaper editor seeking an investigation into illegal mining. The Central Empowered Committee (CEC) was directed to submit reports. Its interim report of 26 April 2010 revealed that many mines were operating without requisite clearances and made several recommendations: mining under deemed extension required environmental clearance, consent to operate, approved mining plans, and payment of Net Present Value (NPV) for forest land; no forest land could be leased without prior Forest (Conservation) Act approval; and areas subsequently identified as DLC forest must be treated as forest and NPV paid. The State of Odisha accepted some recommendations but compliance remained inadequate. The matter was repeatedly listed, and in 2013 the Court called for a comprehensive CEC report on forest and environmental issues. Meanwhile, the Justice M.B. Shah Commission of Inquiry report on illegal mining in Odisha prompted the filing of a fresh writ petition by Common Cause seeking immediate cessation of illegal mining, termination of offending leases, recovery of illegal wealth under the MMDR Act, and a CBI investigation. On 21 April 2014, the Court rejected preliminary objections to maintainability, issued notice, and directed the CEC to prepare a list of lessees operating without clearances for an interim order. The CEC's final report was submitted on 25 April 2014. On 16 May 2014, after considering the report, the Court passed a detailed interim order directing that mining operations be suspended for all lessees without statutory clearances and listing defaulters for further action. The interim order aimed to halt ongoing environmental damage, enforce compliance with mining, forest, and environment laws, and set the stage for recovery of dues and prosecution of violators.
Headnote
A) Mining Regulation - Statutory Clearances - Requirement of Environmental and Forest Clearances - Mines and Minerals (Development and Regulation) Act, 1957; Forest (Conservation) Act, 1980; Environment (Protection) Act, 1986 - Mining operations, even under deemed extension, require environmental clearance, consent to operate from Pollution Control Board, approved mining plan, and NPV deposit for forest area; mining in forest land additionally requires FC Act/TWP approval - Held that mines without these clearances are operating illegally and must cease (Paras 4, 8). B) Forest Law - Forest Land Leasing - Prior Approval under FC Act - Forest (Conservation) Act, 1980 - No forest land can be leased without first obtaining approval under the FC Act; the forest area approved under FC Act must equal the forest area in mining lease approved under MMDR Act - Held that all mining lease holders must pay NPV for entire forest area included in the lease (Para 4). C) Environment Law - DLC Forest Areas - Treatment of Deemed Forests - Forest (Conservation) Act, 1980; Supreme Court Orders - Substantial areas originally classified as non-forest in mining leases in Odisha were later identified as DLC forest; such areas to be treated as forest requiring FC Act permission for mining, and NPV to be paid for entire DLC area; mining in unbroken DLC land only with FC Act approval; broken DLC land may continue subject to compliance with other statutory requirements (Para 4). D) Public Interest Litigation - Investigation into Illegal Mining - Directions to CEC - Constitution of India, Article 32 - Court directed CEC to conduct exhaustive study of illegal mining in Odisha and submit report on forest and environmental issues; parties directed to cooperate; failure to cooperate would not prevent CEC from reporting - Held that comprehensive information from State Government and lessees is necessary to ascertain extent of violations (Paras 2, 6, 8). E) Mining Law - Recovery of Illegal Gains - Sections 21(1), 21(5) MMDR Act - MMDR Act, 1957 - Petitioners sought recovery under Section 21(5) and prosecution under Section 21(1) for illegal mining; Court issued notice and called for list of lessees operating without clearances, directing that they be stopped - Held that illegal mining must be addressed through investigation and recovery (Paras 9, 10).
Issue of Consideration
Whether mining operations in Odisha are being conducted in compliance with the MMDR Act, 1957, Forest (Conservation) Act, 1980, Environment (Protection) Act, 1986, and other laws; and what measures are required to stop illegal mining and rectify environmental damage.
Final Decision
The Court passed an interim order on 16 May 2014 directing suspension of mining operations for lessees operating without statutory clearances and directing CEC to list such lessees; final order was yet to be passed.
Law Points
- Legal points not extracted
- mining operations require environmental clearance under EPA and FC Act
- consent to operate from Pollution Control Board
- approved mining plan
- and NPV deposit for forest land
- forest land cannot be leased without prior FC Act approval
- deemed extension does not obviate need for statutory clearances
- NPV to be paid for entire forest area in lease
- DLC forest areas require FC Act permission
- mining in forest land only with approval under FC Act/TWP
- Article 32 jurisdiction invoked to enforce compliance
