CUTTACK: The Orissa High Court has partially quashed a state government notification reconstituting the district mineral foundation (DMF) for Jajpur district, holding that inclusion of certain gram panchayat sarpanchs was contrary to the Odisha District Mineral Foundations Rules, 2015.
A division bench comprising Chief Justice Harish Tandon and Justice MS Raman delivered the judgment while disposing of a writ petition filed by five residents of Kaliapani challenging the notification dated July 24, 2025. By the said notification, the government had reconstituted the board of trustees of the district mineral foundation for Jajpur with 17 members.
The petitioners contended that although major mineral mines are situated within the territorial jurisdiction of Kaliapani GP, Kansa GP and Ransol GP, the notification included the sarpanchs of Pimpudia, Haripur and Dhuligarh panchayats. This, they argued, was in violation of Rule 4 of the Odisha District Mineral Foundations Rules, 2015.
Emphasising the distinction between the object of the DMF and its composition, the court held that the foundation is meant for the interest and benefit of persons and areas affected by mining operations. However, once Rule 4 mandates inclusion of three gram panchayat members from areas where major mineral concessions are situated, it excludes inclusion of representatives from adjoining villages where no mines are located.
“We find that the inclusion of the sarpanches of the nearby/adjoining gram panchayats, where the mine is not situated is contrary to Clause (vi) of sub-rule (1) of Rule 4 of the said ODMF Rules,” the bench ruled, and partially quashed the notification to the extent of inclusion of the three sarpanchs of Pimpudia, Haripur and Dhuligarh GPs as members of the DMF.
The development commissioner has been directed to reconstitute the foundation strictly in accordance with Clause (vi) of sub-rule (1) of Rule 4 of the Odisha District Mineral Foundations Rules, 2015 within four weeks from communication of the order.