The court held that District Mineral Foundation contributions must adhere to statutory rates, reducing the unlawful 30% charge to the prescribed 10%, with excess payments subject to adjustment.

Order :

Sujit Narayan Prasad, J.

1. Reference may be made to order dated 18^th September, 2025.

2. In pursuance thereto, Mr. Arava Rajkamal, Secretary, Department of Mines and Geology, Government of Jharkhand has appeared and submitted that since the matter pertain to the reduction of the amount of DMF from 30% to 10%, for which approval was taken from the Department as such some delay has been caused in filing the counter affidavit. Now, the counter affidavit has been filed on merit.

3. However, the Secretary, Department of Mines and Geology, Government of Jharkhand has assured this Court that henceforth he will take care that the counter affidavit be filed as per direction passed by the Court and in case of any failure, the erring officers will be taken to task.

4. The instant writ petition, under Article 226 of the Constitution of India, has been filed for the following relief(s):

Prayer made in W.P.(C) No. 2756 of 2025

a. For the issuance of an appropriate writ(s), order(s) or direction(s) for commanding and directing the Respondents to charge and recover District Mineral Foundation (DMF) contribution at the rate of 10% of the royalty in respect of the coal block allocated to the Petitioner which was allotted under the Coal Mines (Special Provisions) Act, 2015, on 08.09.2015 and not at the higher rate of 30% currently being levied.

b. For the issuance of an appropriate writ(s), order(s) or direction(s) for refund or adjust the excess amount of DMF contribution already paid by the Petitioner at the rate of 30% of royalty from the date of commencement of mining operations, on the basis that such deduction is contrary to the applicable statutory rules, including Rule 2(a) of the Mines and Minerals (Contribution to District Mineral Foundation) Rules, 2015 and Rule 6(i) of the Jharkhand District Mineral Foundation (Trust) Rules, 2016;

Prayer made in W.P.(C) No. 3894 of 2025

a. For the issuance of an appropriate writ(s), order(s) or direction(s) to hold that the Respondents collecting charge 30% of the royalty in respect of the coal block allocated to the Petitioner which was allotted under the Coal Mines (Special Provisions) Act, 2015 is illegal and dehors the law including Rule 2(a) of the Mines and Minerals (Contribution to District Mineral Foundation) Rules, 2015 and Rule 6(i) of the Jharkhand District Mineral Foundation (Trust) Rules, 2016 and to further hold that Respondent can charge and recover District Mineral Foundation (DMF) contribution at the rate of 10% of the royalty in respect of the coal block allocated to the Petitioner which was allotted under the Coal Mines (Special Provisions) Act, 2015, on 08.09.2015.

b. For the issuance of an appropriate writ(s), order(s) or direction(s) for Refund or adjust the excess amount of DMF contribution already paid by the Petitioner at the rate of 30% of royalty in excess of 10%, from the date of commencement of mining operations since March 2024, on the basis that such deduction is contrary to the applicable statutory rules, including Rule 2(a) of the Mines and Minerals (Contribution to District Mineral Foundation) Rules, 2015 and Rule 6(i) of the Jharkhand District Mineral Foundation (Trust) Rules, 2016;

Factual aspect:

5. Since similar facts and prayers have been made in these writ petitions, as such for the sake of convenience, the brief facts of the first case, i.e., in W.P. (C) No. 2756 of 2025, is referred as under:

6. The Petitioner herein is a Government of India undertaking engaged in generation and supply of power, and is the allottee of the Chatti Bariatu Coal Mining Project (CBCMP), located in the State of Jharkhand. The said coal block was originally allocated to NTPC by the Minist