
CHENNAI: The Madras High Court has confirmed the powers of the state government to impose a penalty of 100% of the value of the minerals quarried without obtaining environmental clearance (EC) as mandated by the 2016 Environmental Impact Assessment notification issued by the union government.
The judgment was pronounced by Justice D Bharatha Chakravarthy on Thursday while disposing of a batch of petitions filed by 83 lease holders. They challenged the orders issued by various district collectors imposing 100% penalty on the lease holders for the period from January 15, 2016 to January 10, 2017 for carrying out quarrying operations without obtaining the environmental clearance.
The petitioners had submitted that the impugned orders were inherently flawed as there was no legal mandate to obtain EC before January 1, 2017, and the quarrying operations were held with valid licences, apart from paying the seigniorage fees. They also contended that EC was not required for quarrying in an area less than 5 hectares. However, the judge negated this contention.
By virtue of the authoritative pronouncement of the judgment by the SC in the Common Cause case, read with section 20 (a) of the Mines and Minerals (Development and Regulation) Act 1957, it can be seen that the state, as a delegatee in framing rules relating to minor minerals, could not have created any contra rules that overreach or supersede the notifications issued by the centre. “Consequently, notwithstanding Rule 42 (iii) of the TN Minor Mineral Concession Rules, 1959, which grants 630 days of time, I hold that both the lessees of major and minor minerals of less than 5 ha are mandated to obtain EC, even if they are existing lessees and their renewal is not due as of 15.01.2016,” the order read.
Justice Chakravarthy stated once it has been established that it is a mandate of law, merely because there were some actions taken by the state government and the MoEF in issuing clarifications, it cannot be claimed that Section 21 (5) of the MMDR Act, 1957 cannot be enforced.
He upheld the individual orders of the collectors, challenged in the writ pleas, which impose 100% penalty of the minerals’ value under the MMDR Act. However, he ordered deducting the seiniorage fees already paid by the lessees from the penalty amount and recover the balance which shall be intimated to them within three weeks. The lessees have to pay the amount within two months thereof.
Advocate General PS Raman, assisted by additional government pleader Stalin Abhimanyu, appeared for the state government.