Supreme Court Upholds Vested Mining Lease Rights Accrued Before 2015 Amendments

Supreme Court Upholds Vested Mining Lease Rights Accrued Before 2015 Amendments​

A landmark judgment by the Supreme Court of India has reinforced the rights of mining lease applicants whose claims were established prior to significant statutory changes under the Mines and Minerals (Development and Regulation) Act, 1957. The Court clarified that applications with vested or accrued rights before certain timelines remain valid despite subsequent legislative amendments concerning auction processes.

The judgment addressed a dispute regarding mining lease applications, ruling that if a decision to grant a mining lease, along with requisite approvals, was finalized before 2015, the applicant's entitlement continues irrespective of later introductions, including Section 10A which mandates auction as the primary route for grant.

The Supreme Court held that such cases are not considered 'pending applications' dating from 2015 and consequently are not subject to statutory regimes introduced post-2015 or lapse provisions enacted in 2021. The findings establish a protection mechanism for pre-existing claims within the mining sector.

Key Takeaways from Supreme Court Order​

The judgment, stemming from the case Karanartham Viramah Foundation versus State of Maharashtra & Anr., emphasized that where ministerial decisions regarding a mining lease were made prior to 2015, those rights remain intact. The court specifically looked at a matter concerning iron ore mining in Gadchiroli District.

The Court noted several findings relating to the original application:

• A decision was made by the State Government and followed by prior approval from the Central Government for granting the Iron Ore Mining Lease.
• This pre-2015 recommendation and approval established a vested right for the preferential rights holder under Section 11(1) of the MMDR Act, making the application distinct from those classified as pending in 2015.

The Supreme Court ultimately dismissed the Public Interest Litigation (PIL), affirming that the challenged order was not illegal. The court maintained that no mining operation can proceed without obtaining all necessary statutory approvals, including mining plan and environmental clearance.

Industry Reaction and Company Review​

Deccan Gold Mines Ltd confirmed it is currently conducting a detailed examination of the Supreme Court's judgment and its implications for the pending proceedings concerning its Ganajur project. The company’s legal team reviewed the order, which deals with the rights of applicants before amendments were made to the Mines and Minerals (Development and Regulation) Act, 1957.

DECNGOLD Stock Price Movement​

Deccan Gold Mines Limited is rallying in live trading at 12:46 PM, with shares climbing by 5.56% to reach ₹172.85. The stock maintains strong momentum today, as it trades within its intraday range, which has seen lows near ₹167.6 and a high of ₹175.9 on significant volume.