IN THE HIGH COURT OF KERALA AT ERNAKULAM
KAUSER EDAPPAGATH, J.
Ashok George S/o C.J. Varkey – Appellant
Versus
The Secretary to Government Industries Department – Respondent
W.P. (C) Nos. 36843 of 2015, 11397 of 2017, 14425, 15037, 15986, 38526 of 2023, 254, 10670, 43302 of 2024
Decided On : 19-12-2025
Certainly. Based on the provided legal document, the key points are as follows:
The Kerala Minerals (Vesting of Rights) Act, 2021, was upheld as constitutional and valid. It aims to serve the public interest and promote uniformity in mineral rights across regions, particularly vesting mineral rights in the State without requiring compensation to landowners for mineral rights vested in the State (!) (!) .
The State has the legislative competence to enact such laws under relevant entries of the Constitution, specifically those pertaining to land and mineral regulation. The Act is within the powers granted to the State and is not ultra vires (!) (!) (!) .
The Act is not in conflict with central legislation concerning mineral development, such as the MMDR Act, 1957, nor with laws related to land acquisition and rehabilitation, such as the RFCTLARR Act, 2013. It explicitly overrides these laws through a notwithstanding clause (!) (!) (!) .
The retrospective application of the Minerals Vesting Act, 2021, from the date of its enactment in 2019, was deemed lawful and proper, given the legislative history and prior ordinances (!) (!) .
The State's authority to levy royalty is recognized, but only from the date the Act came into force. Prior to that, in the Malabar area, minerals in private land are considered the property of landowners, and the State cannot claim royalty for minerals extracted from landowners' private property before the Act’s enactment (!) (!) .
The ownership of minerals in the Malabar region, prior to the Act, was affirmed as belonging to landowners, not the State, based on legal principles that define property as rights guaranteed and protected by law. This includes the understanding that minerals are part of the land until extracted (!) (!) (!) .
The State retains the authority to regulate mineral extraction activities, requiring statutory permissions and licenses, even when mineral rights are owned privately. Unauthorized extraction is illegal, and the State can recover the value of minerals, fines, and penalties (!) (!) (!) .
The ownership of mineral rights and the obligation to pay royalties are distinct; even when minerals vest in private owners, the State can still claim royalties if statutory provisions apply, especially after the declaration that minerals are part of the land and subject to regulation (!) (!) (!) .
Certain rules and provisions, such as Rule 89 of the KMMC Rules, 2015, are within the delegated legislative powers of the State and do not violate constitutional rights such as Article 19(1)(g). These rules are valid and enforceable unless explicitly repealed or amended (!) (!) .
The courts have consistently held that the deprivation of property, in the context of vesting mineral rights in the State, does not require compensation if it is done under law for public purpose, and the law provides for such vesting without compensation. The rights to natural resources are considered as part of the public trust and are managed as shared natural wealth (!) (!) (!) (!) .
The State's power to impose royalties and regulate mining activities is derived from constitutional entries and legislation, and such powers are exercised within the legal framework, respecting the ownership rights of landowners while ensuring public resource management (!) (!) (!) .
In cases of illegal extraction or without statutory permissions, the State is entitled to recover the value of the minerals, fines, and penalties, and demand compliance with licensing requirements for future operations (!) (!) (!) .
The validity of demand notices and orders issued by authorities for recovery of mineral value and fines, including claims of royalties, is upheld where extraction was unauthorized or illegal, and where statutory permissions were not obtained (!) (!) (!) (!) .
The courts have clarified that the rights and obligations concerning mineral extraction depend on the timing of the extraction relative to the enforcement of the Minerals Vesting Act, 2021, and that claims for royalties prior to the enforcement date are not sustainable in the Malabar area (!) (!) (!) .
Overall, the legal framework affirms that mineral rights are property rights, but the State has the authority to regulate, control, and vest these rights in the public interest, with certain protections for landowners, especially regarding compensation and prior rights, which are recognized under specific circumstances.
| Table of Content |
|---|
| 1. rights over minerals in kerala. (Para 1 , 2 , 5 , 6) |
| 2. constitutional validity of the minerals vesting act. (Para 3 , 4 , 8 , 12) |
| 3. issues for consideration concerning mineral rights. (Para 9 , 10) |
| 4. legal implications of the minerals vesting act. (Para 11 , 13 , 67) |
| 5. definition of property under article 300a. (Para 19 , 21 , 24) |
| 6. public trust doctrine and legislative competency. (Para 38 , 43) |
| 7. court's final conclusions on claims and legality. (Para 73 , 74 , 76 , 78) |
JUDGMENT :
KAUSER EDAPPAGATH, J.
Prelude
1. Kerala State, often referred to as "God’s Own Country" is rich in various mineral resources, including minor minerals. The State has a wide range of mineral deposits, making it a significant contributor to India’s mineral wealth. Besides the former Malabar province, the rights over mineral wealth beneath the land across Kerala are owned by the State and are governed by the Travancore Proclamation, 1881 and the Cochin Proclamation, 1905, respectively. The question whether minerals lying beneath the soil in the former Malabar province belong to the State or the landowners with Jenm rights was considered by the Full Bench of the Kerala High Court on reference in Thressiamma Jacob v. Department of Mining and Geology, AIR 2000 Ker 300. The reference was answered by holding that the minerals beneath the soil belong to the State, and royalty must be paid to the Government for quarrying leases. In appeal, the Supreme Court Thressiamma Jacob v. Department of Mining and Geology, (2013) 9 SCC 725 reversed the Kerala High Court’s judgment and declared that the ownership of the subsoil/mineral wealth of the land, comprised in the former Malabar province, rests with the respective owners/jenmis and not with the State. However, the Supreme Court refused to express its opinion regarding the liability of the property owners to pay royalty to the State, as that issue had been referred to a Larger Bench in Mineral Area Development Authority v. Steel Authority of India, (2011) 4 SCC 450. The Court's declaration was based on the finding that there was no legislation that vests mineral rights or subsoil rights in the State, and the ownership of such subsoil or mineral wealth would normally follow the ownership of the land. It paved the way for the enactment of the Kerala Minerals (Vesting of Rights) Act, 2021 (for short, the Minerals Vesting Act, 2021), which vests all rights in the minerals within the soil and subsoil of all lands of any ownership and tenure in the Government. During the pendency of these writ petitions, the nine-Judge Bench of the Supreme Court, Mineral Area Development Authority v. Steel Authority of India, (2024) 10 SCC 1 declared that royalty is not a tax and that it is the private owner who is entitled to collect royalty when he is the owner. The petitioners in all the writ petitions are aggrieved by the demand of royalty and cost of the minerals made by the State towards the extraction of minor minerals from their respective properties under the provisions of the Mines and Minerals Development and Regulation Act, 1957 (for short, MMDR Act, 1957) and Kerala Minor Mineral Concession Rules, 2015 (for short, KMMC Rules, 2015)
Brief Facts and Rival Contentions
2. The petitioners in WP(C) Nos. 14425/23, 15037/23, 10670/24, and 43302/24 operated quarries on properties owned by them, located in the former Malabar province. Following the enactment of the Minerals Vesting Act, 2021, they received a demand notice for the payment of royalty, mineral costs, and fine, alleging that they had unlawfully quarried granite from their properties. According to the petitioners, the authority of the State to collect the royalty depends on the vesting of minerals in the State. They challenge the constitutional validity of the Minerals Vesting Act, 2021, which vests ownership of the subsoil and mineral wealth of the land within the former Malabar province in the State, primarily on the ground that it violates Articles 300A an
The Minerals Vesting Act, 2021 is constitutional; state cannot levy royalty for self-extracted minerals by landowners prior to the Act's enforcement.
Subordinate legislation must align with the parent Act; regulations exceeding authority are invalid. Royalty payment under mining laws can only be for minerals actually removed or consumed.
The court validated the authority of the state to impose penalties for unauthorized quarrying, establishing compliance with statutory rules as per the MMDR Act.
Point of Law : MMDR Act, 1957, though takes away power of State to make laws under Entry 23 of List II, by S.15 of MMDR Act, power to regulate quarry leases, mining leases or other mineral concession....
Power of State Governments to make rules in respect of minor minerals and rules for preventing illegal mining, transportation and storage of minerals - State Government has no legislative competence ....
The court reaffirmed the authority of state governments to impose penalties under minor mineral concession rules, emphasizing that such penalties are lawful per Sections 14, 15, and 21 of the MMDR Ac....
Advocates appeared :For the Appellant : Naman Nagrath, Sparsh Prasad For the Respondent : Pushyamitra Bhargav
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