IN THE HIGH COURT OF JUDICATURE AT BOMBAY
S.J. KATHAWALLA, MILIND N. JADHAV, JJ.
Royale Urbanspace and Others – Appellant
Versus
State of Maharashtra and Others – Respondents
Writ Petition No. 197 of 2022
Decided on : 01-03-2022
Royalty - Unauthorised Excavation - Maharashtra Land Revenue Code, 1966 - Section 48(7), Rule 46 of Maharashtra Minor Mineral Extraction (Development and Regulation) Rules, 2015 - The court quashed and set aside the show cause notices, hearing notice, final notices, and final order issued by the Tahasildar, Shahapur, demanding payment of royalty and penalty for unauthorised excavation of minor minerals on the petitioner's land. The court held that the excavation of ordinary earth for construction purposes did not attract the levy of royalty and penalty under Section 48(7) of the MLR Code, especially when the excavated earth was used for levelling and development on the same plot. The court emphasized the purpose of excavation and the absence of commercial exploitation of the excavated earth, and highlighted the lack of evidence to substantiate the charge of unauthorised transportation of minor minerals.
Fact of the Case:
The Petitioners, owners of a plot of land, were granted permissions for development and construction of residential buildings. The Respondent issued show cause notices and final orders demanding payment of royalty and penalty for unauthorised excavation of minor minerals on the petitioner's land. The Petitioners argued that the excavation was for construction purposes and the extracted earth was used for levelling and development on the same plot.
Finding of the Court:
The court found that the Petitioners had obtained necessary permissions for development and construction, and there was no evidence to substantiate the charge of unauthorised transportation of minor minerals. The court emphasized the purpose of excavation and the absence of commercial exploitation of the excavated earth, and held that the levy of royalty and penalty was not justified.
Issues: The issues involved the legality of the levy of royalty and penalty for unauthorised excavation of minor minerals on the petitioner's land, and the absence of evidence to substantiate the charge of unauthorised transportation of minor minerals.
Ratio Decidendi: The court's decision was based on the purpose of excavation and the absence of commercial exploitation of the excavated earth. The court emphasized that the excavation of ordinary earth for construction purposes did not attract the levy of royalty and penalty under Section 48(7) of the MLR Code, especially when the excavated earth was used for levelling and development on the same plot.
Final Decision: The court quashed and set aside the show cause notices, hearing notice, final notices, and final order issued by the Tahasildar, Shahapur, demanding payment of royalty and penalty for unauthorised excavation of minor minerals on the petitioner's land.
JUDGMENT :
S.J. Kathawalla & Milind N. Jadhav, JJ.
By the present Writ Petition, the Petitioner has prayed for the following reliefs:
2. The Petitioners have challenged two show cause notices, both dated 29.01.2021, hearing notice dated 30.06.2021, two final notices, both dated 23.08.2021 issued by the Respondent No. 2 - Tahasildar, Shahapur, demanding payment of royalty and penalty of Rs.1,07,12,000/- and Rs. 5,71,35,104/- and order dated 21.10.2021 passed by the Respondent No. 2 - Tahasildar, Shahapur calling upon the Petitioners to deposit an amount of Rs.1,09,18,000/- under the provisions of Section 48(7) of "the Maharashtra Land Revenue Code, 1966" (for short "MLR Code, 1966"). The Respondent No.2 has issued the impugned notices and passed the impugned order against the Petitioners for extraction of minor minerals unauthorisedly.
3. Before we advert to the submissions made by the respective Advocates, it will be apposite to state the relevant facts in brief:
3.1. The Petitioners are owners of land bearing survey No.44/1 ad-measuring 2 hectares situated at Mauje Borsheti, Tal. Shahapur, Dist. Thane (for short: "the said property"). In 2013, Petitioners desired to develop the said property for residential purpose and submitted the proposal and building plans to the Collector - Thane. The Collector - Thane forwarded the proposal to the Town Planning Department,
Thane for approval;
3.1.1. On 16.04.2013, the Deputy Director of Town Planning, Thane by his order bearing No.NA/BP/Mouje Borsheti/Tq. Shahapur/Dist. Thane/933 approved the building plans submitted by the Petitioners and granted permission for construction of residential buildings on the said property;
3.1.2. On 23.04.2014, the Collector, Thane by his order bearing No. Revenue/REV/C1/ TEE-11/ NAP/Borsheti/SR-113/ 2012 granted permission for non-agricultural user of the said property;
3.1.3. The Petitioner constructed various buildings on the said property from time to time in respect of which occupation/ building completion certificates dated 27.12.2019 and 28.01.2020 were granted by the Respondent No. 2;
3.1.4. The Petitioners registered their project of development on the said property under the Real Estate (Regulation and Development), Act and have obtained all necessary permissions in accordance with law;
3.2. On 29.01.2021, Respondent No. 2 issued show cause notice bearing No. 6389/2021-22 for unauthorised excavation of 1030 brass of minor minerals on the said property without seeking prior permission from the Competent Authority. Petitioners were called upon to submit their explanation alongwith documentary evidence within 7 days as to why the Petitioners were not liable to pay an amount of Rs. 1,07,12,000/- towards royalty and penalty for the unauthorised excavation, failing which necessary steps would be taken under the provisions of Section 48(7) of the MLR Code, 1966;
3.2.1. On the same date i.e. 29.01.2021 Respondent No. 2 issued an identical show cause notice bearing No. 10068/2021-22 in respect of unauthorised excavation of 5493.76 brass of minor minerals without seeking prior permission of the Competent Authority in respect of the said property and calling upon the Petitioners to submit their explanation alongwith documentary evidence within 7 days as to why the Petitioners were not liable to pay an amount of Rs. 5,71,35,104/- towards royalty and penalty for the unauthorised excavation, failing which necessary steps would be taken under th
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