The validity of the regulatory provisions under the Mines and Minerals Act is upheld, affirming penalties for non-compliance as constitutional and enforceable.

JUDGMENT :

Dr. Pushpendra Singh Bhati, J:

1. The instant writ petition under Article 226 of Constitution of India has been preferred, claiming the following reliefs:

“It is, therefore most humbly and respectfully prayed that this writ petition filed by the petitioner may kindly be allowed and:-

(a) By an appropriate writ, Order or direction, the 3^rd proviso to Rule 16(2) of the Mining Mineral Concession Rules, 2017 may Kindly be struck down.

(b) By an appropriate writ, order or direction, the Order dated 20.09.2017 (Annexure-5) imposing penalty of Rs. 15,11,824/- may kindly be declared illegal and be quashed and set aside and the respondents be directed to permit the petitioner to carry out the mining operation without insisting upon the payment of penalty.

(c) Any other appropriate writ, order or direction which this Hon’ble Court considers just and proper in the facts and circumstances of the present case, may kindly be passed be passed in favour of the petitioner.

(d) costs of the writ petition may kindly be awarded to petitioner.”

2. Before delving into the adjudicatory pursuit, pertaining to the reliefs claimed herein, it is pertinent to note that the statutory framework under the Mines and Minerals (Development and Regulation) Act, 1957 (hereinafter referred to as, "Act of 1957") classifies minerals into major and minor categories. As per Section 3 (e) of the Act of 1957, minor minerals are those which the Central Government may, by notification in the Official Gazette, declare as such; all other minerals are categorized as major minerals. Such classification determines the regulatory authority; major minerals are governed by the Central Government under the Mineral Concession Rules, 1960, while minor minerals fall under the purview of State Governments, which frame their own Rules under Section 15 of the Act of 1957; in the present case, such rules are known as ‘Rajasthan Minor Mineral Concession Rules, 2017’ (hereinafter referred to as, “Rules of 2017”) framed by the State of Rajasthan.

2.1 Furthermore, it is also important to note that on 10.02.2015, the Central Government issued Notification No. GSR 423(E), reclassifying 31 minerals, including Ball Clay and Silica Sand, from major to minor minerals. Such reclassification transferred the regulatory control over these minerals to the State Governments, thereby subjecting them to State-specific rules and procedures. The reclassification altered the regulatory landscape, particularly concerning compliance requirements, lease procedures and the imposition of penalties.

2.2. The instant controversy arose when the petitioner herein applied for grant of a mining lease in respect of minerals Ball Clay and Silica Sand on 18.10.2013 for an area situated in Village Guda, Tehsil Kolayat, District Bikaner, registered as M.L. No. 48/2013. At the time of the application, Ball Clay and Silica Sand were classified as major minerals and were governed by the provisions of the Mineral Concession Rules, 1960 and the Act of 1957. On 10.02.2015, the Central Government issued a notification reclassifying Ball Clay and Silica Sand as minor minerals. However, in view of the subsequent developments, the matter came to be governed by the Rules of 2017.

2.2.1. Pursuant to the application for grant of Mining lease, a Letter of Intent (LoI) was issued to the petitioner on 05.05.2015 under the Mineral Concession Rules, 1960 and the Act of 1957, as amended upto 2015. After the change in governing law as stated above, the petitioner’s LoI was saved under Rule 5 of Rules of 2017. The terms of the LoI required the petitioner to submit a mining plan, progressive mining closure plan, and obtain an Environmental Clearance Certificate within six months of the issuance of the said LoI.

2.2.2. On 05.10.2015, a ban was imposed on the grant of mining leases for the relevant minerals until new rules were framed. Subsequently, the Rules of 2017 came into force, with Rule 16(2) prescribing the grant of mining leases subject t