NDLI: The Goa Foundation Vs. Sesa Sterlite Ltd. & Ors

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	Mines and Minerals: Mining leases – Renewal of – Propriety
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Case(s) Referred	Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4 Referred Case 5 Referred Case 6 Referred Case 7 Referred Case 8 Referred Case 9 Referred Case 10 Referred Case 11 Referred Case 12 Referred Case 13
Case Type	Special Leave Petition
Court	Supreme Court of India
Disposal Nature	Case Disposed Off
Headnote	Mines and Minerals: Mining leases – Renewal of – Propriety – Appointment of Commission of Inquiry, pursuant to information regarding largescale illegal mining in contravention of provisions of relevant laws – After the report of the Commission, Govt. of Goa by order dated 10.9.2012 suspended all the mining operations in the State – Ministry of Environment and Forest (MoEF) kept in abeyance the environmental clearances in the State of Goa by order dated 14.9.2012 – PIL was filed by Goa Foundation in Supreme Court seeking directions to Governments of Union and State of Goa to take steps to terminate the mining leases where mining was carried out in violation of various statutes – Writ petitions by mining leaseholders before High Court seeking quashing of the orders dated 10.9.2012 and 14.9.2012, were transferred to Supreme Court – Supreme Court in Goa Foundation case held that orders dated 10.9.2012 and 14.9.2012 were not liable to be quashed and would continue till decisions are taken to grant fresh leases and fresh environmental clearances for mining projects – Other writ petitions were filed before High Court by several mining lease-holders for consideration of their applications for second renewal of mining leases – High Court held that the decision in Goa Foundation case was not an impediment in considering the applications for second renewal; and that renewal of a lease is also a fresh grant – High Court directed the State to execute the lease deeds u/s. 8(3) of MMDR Act in favour of the lease-holders who have already paid the stamp duty in accordance with Mineral Policy 2013 – Further directed the State to decide the renewal applications u/s. 8(3), of those who had not paid the stamp duty – State of Goa thereafter formulated Goa Grant of Mining Leases Policy 2014 – Central Government prepared draft of Mines and Minerals (Development and Regulation) Act, 2014 (amended Act) and uploaded the same on the website – The proposed amendment inter alia by introducing s. 10B provided for competitive bidding – Soon thereafter and till the date of promulgation of Amendment Ordinance, State of Goa granted second renewals to several mining lease-holders – Thereafter, the State requested MoEF to lift the abeyance order (dated 14.9.2012) on environmental clearances – Consequently MoEF by orders dated 20.3.2015 lifted the abeyance order in respect of 72 cases out of 139 – Held: The decision of State of Goa to grant second renewal of mining leases was erroneous and contrary to decision in Goa Foundation case – State was obliged to grant fresh mining leases as declaration in Goa Foundation case was explicitly to grant fresh leases – Grant of fresh lease is not the same as renewal of lease – State was not under any constitutional obligation to grant fresh mining leases through process of competitive bidding or auction – However, the second renewals were unduly hasty, without taking into consideration all relevant material and ignoring relevant material, was not in the interest of mineral development – The decision of renewal was only to augment the revenues of the State which is outside the purview of s. 8(3) of 1957 Act – Therefore, the second renewal granted by the State is liable to be set aside – MoEF was obliged to grant fresh environmental clearance in respect of fresh grant of mining leases in accordance with law and decision in Goa Foundation case and not by merely lifting the abeyance order dated 14.9.2012 – High Court proceeded on the erroneous basis that it could direct the State to grant second renewal notwithstanding the direction in Goa Foundation case – Mines and Minerals (Development and Regulations) Act, 1957 – s.8(3) – Forest (Conservation) Act, 1980 – Environment (Protection) Act, 1986. Auction: Natural Resource allocation – Through auction method – Whether mandatory – Held: There is no constitutional or otherwise mandate for allocation of natural resources (other than spectrum) through auction method – But, auction process should not be given a go-bye without any justification – The decision to give a go-bye is judicially reviewable and would attract Art. 14 – Review is permissible only when the allocation is for commercial pursuits of profit de hors any social or welfare purpose – It will not be permissible if such allocation is for a social or welfare purpose – Judicial Review – Constitution of India – Art. 14. Judicial Review: Judicial review of policy decision – In respect of disposal of natural resources – Scope of – Held: Judicial review of a policy is kept open if it does not serve the common good as understood in Art. 39(b) and if violates Art. 14 – However, the courts must be very cautious and circumspect in diluting or setting aside a policy and must do so only if it is constitutionally unavoidable – Constitution of India – Arts. 14 and 39(b) – Administrative Law. Lease: Renewal of lease vis-a-vis grant of fresh lease – Held: Grant of a fresh lease is not the same as the renewal of a lease – Therefore, renewal cannot be called amounting to grant of fresh lease. Environmental Law: The issues having impact on the environment and the people of a community or a region or the State are required to be looked at holistically – One or two violations may be wished away as inconsequential, but multiple violations by several persons can result in serious problems.
Judge	Hon'ble Mr. Justice Madan Bhimarao Lokur
Neutral Citation	2018 INSC 110
Petitioner	The Goa Foundation
Respondent	Sesa Sterlite Ltd. & Ors
SCR	[2018] 2 S.C.R. 361
Judgement Date	2018-02-07
Case Number	32138

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