P.D. Dinakaran, C.J.

1.1) Whether the report of the Lokayukta could be the basis for registering the First Information Report dated 3.2.2009 against the petitioner and to pass an order dated 3.2.2009 seizing the iron ore alleged to have illegally mined in the forest area as well as the tools, vehicles and machinery used for such illegal mining; and whether such FIR and the order of seizure can be quashed by exercising the power of judicial review under Article 226 of the Constitution of India, are the questions that arise for our consideration in the present writ petition.

1.2) The petitioner is a registered Partnership Firm. The petitioner is in the field of mining since 1956.

1.3) The petitioner was originally granted a mining lease in the year 1956 bearing M.L.No.1524 for extracting iron ore for a period of twenty years over an extent of 161.38 hectares in Lakshimpura Village, Sandur taluk, Bellary District, which was extended further for a period of twenty years from 6.7.1978 with effect from 31.7.1976, and the same expired on 31.7.1996.

1.4) When the petitioner sought for second renewal of the said mining lease dated 31.7.1996, the petitioner filed an application seeking clearance under Section 2 of the Forest (Conservation) Act, 1980 (for short, ‘the FC Act’) as the area involved is a forest land; and the State Government in turn sought prior approval of the Central Government under Section 2 of the FC Act, for diversion of the forest land for the non-forest activity viz., for mining purpose. The forest department gave clearance under Section 2 of the FC Act, but reduced the extent of land to 105.06 hectares of land instead of the original extent of 161.39 hectare.

1.5) Accordingly, the Central Government, by order dated 3.5.1997 granted final clearance under Section 2 of the FC Act in favour of the petitioner for diversion of 105.06 Hectares of Forest land in Lakshmipura Village, Sandur Taluk, Bellary district for extraction of iron ore for a period of ten years co-terminus with the mining lease issued under the Mines and Minerals (Development and Regulation) Act, 1957 (for short, MMDR Act).

1.6) The Forest Department conducted a joint survey and demarcated the boundaries of the mining lease area of the petitioner and thereafter the petitioner entered into an Agreement dated 7.8.1997 with the Deputy Conservator of Forests, Bellary Division, Bellary representing the Government of Karnataka, viz., the fourth respondent.

1.7) Later, on the request made by the petitioner, the Central Government, by order dated 2.11.1998 modified the forest land lease for a period of twenty years with effect from 6.7.1996. The State Government, in turn, passed an order dated 16.2.1999 extending the lease of the forest land granted to the petitioner for a period of twenty years from 6.7.1996 co-terminus with the lease granted under the MMDR Act. In continuation of the said order dated 16.2.1999, the State Government issued a notification dated 28.4.2000 sanctioning the renewal of the mining lease in favour of the petitioner firm for a period of twenty years with effect from 31.7.1996 over an extent of 105.06 hectares of land in Sannajagalaharuvi (Lakshmipura) Village, Sandur taluk; Bellary district. Pursuant to the Notification dated 28.4.2000, the State Government, represented by the Director of Mines and Geology, Bangalore executed mining lease deed bearing M.L.No.2290 in favour of the petitioner on 11.12.2000, similar to the Agreement dated 7.8.1997, but for which the petitioner would not have been granted the mining lease.

1.8) Thereafter, the petitioner made an application to the forest department seeking for grant of additional area of 15.077 hectares of forest land for dumping overburden waste, installation of conveyer belt and for laying approach roads. The State Government considered the application of the petitioner and sent its recommendation to the Central Government seeking its prior approval under Section 2 of the FC