JUDGMENT

Ranjan Gogoi, J.

This application (I.A. NO.248 of 2015) has been filed seeking the following direction from the Court:

"that iron-ore and manganese ore may be sold in Karnataka without recourse to e-auction conducted by the monitoring committee set up by this Hon'ble Court."

2. The response of the Central Empowered Committee ("CEC" for short) was sought for by this Court. Pursuant thereto a report dated 28th April, 2016 of the CEC has been submitted. In the said report the CEC has stated that it agrees with the statement of the applicant - Federation of Indian Industries, Southern Region (FIMI South) that the basic objectives behind the sale of iron ore through the Monitoring Committee, in terms of the various orders passed by this Court from time to time, have been achieved and an alternative system needs to be put in place. The main suggestions of the CEC are as follows:

(I) The mechanism must provide for the registration of both the buyers and sellers of iron-ore. The sellers of the ore, or the mining-ore lessees, must declare their statutory approvals, modalities of the Reclamation and Rehabilitation Plan ('R & R Plan') and the estimated annual quantity of iron-ore produced by them. The buyers of the ore must declare their eligibility to purchase the ore and the industry connected with said purchase.

(II) The sale of iron-ore by sellers to the buyers must be through an online platform. This e-platform must provide for all the relevant information concerning the iron-ore, such as the grade and moisture-content of the ore, minimum acceptable price by the seller and the provision to view the bids offered by registered buyers on a real-time basis so that there could be a price-match amongst prospective buyers.

(III) The mechanism must provide for online registration of the agreements and transactions executed between the registered buyers and sellers.

(IV) The mechanism must provide a method for online deposit of applicable royalty, taxes, contribution to the Special Purpose Vehicle ('SPV') and other statutory duties; along with the subsequent online confirmation of such receipt.

(V) The mechanism must consist of checks-and-balances which can be implemented across the e-platform, in order to ensure that the sale or purchase of iron-ore is not substantially below the market price.

3. In its counter/reply, the State of Karnataka has indicated its broad agreement with the suggestions of the CEC and has incorporated certain additional recommendations including setting up of a Committee consisting of officials of the State Government to monitor the sale of iron-ore through the e-platform on the basis of long term agreements, a Model of which has also been submitted to the Court.

4. Other stake-holders like the writ petitioners in Writ Petition (C) No. 562/2009 - Samaj Parivartana Samudaya and ors. have objected to any change from the existing pattern of sale of iron-ore through the Monitoring Committee whereas M/s Vedanta Ltd., an iron-ore lessee operating within the State of Karnataka has supported the stand taken by FIMI South in the present I.A. i.e. I.A. No.248 of 2015.

5. The Monitoring Committee through whom iron-ore is currently being sold by e-auction was constituted by the order of this Court dated 2nd September, 2011 accepting the recommendations of the CEC dated 1st September, 2011 to sell the total quantity of illegally extracted iron-ore which at that point of time was 25 MMT (approximately).

6. After the sale of the illegally mined iron-ore was complete, this Court by order dated 23rd September, 2011 continued to entrust the duty and responsibility of sale of iron-ore to the Monitoring Committee. The above position was continued by this Court by its Order dated 18.4.2013 disposing of Writ Petition (C) No. 562/2009 and other connected cases. This is how the current status/situation with regard to sale of iron-ore by e-auction through the Court Appointed Monitoring Committee continues.

7. In the order of this Court dated 18t