The main legal point established in the judgment is the importance of complying with the provisions of the Odisha Minor Mineral Concession Rules, 2016, particularly Rule 27 (10), and the need to ensure fair play and adherence to the rules for the augmentation of revenue for the State.

JUDGMENT :

B.R. Sarangi, J.

The petitioner, by means of this writ petition, seeks to quash the letter dated 20.12.2021 issued by the Tahasildar, Kashinagar under Annexure-6, by which he has been intimated that the Collector, Gajapati-cum-Controlling Authority has cancelled the bid of Khandava Sand Quarry in terms of Rule 27 (10) of the Odisha Minor Mineral Concession Rules, 2016, owing to the reason, as communicated by the Additional District Magistrate, Gajapati in his letter dated 17.12.2021.

2. The factual matrix of the case, in brief, is that a notice bearing no. 4898/Sairat was issued on 20.09.2021 by the Tahasildar, Kashinagar-opposite party no.4 inviting applications from the intending bidders to participate in the auction for grant of long-term lease of different sairat sources under Kashinagar Tahasil in the State of Odisha, for a period of 5 years from the financial year 2021-22 to 2025-26, as per the Odisha Minor Mineral Concession Rules, 2016 (for short “OMMC Rules, 2016”). In the said notice, Khandava Sand Quarry, which was one of the sairat sources, had been put to auction. As per the said notice, interested bidders were required to apply in Form-M enclosing the required documents in a sealed cover and drop the same in the drop box at the Tahasil office between 08.10.2021 and 03.11.2021. It was also indicated that applications will not be accepted after the due date and time, i.e., 5.30 PM of 03.11.2021. The name of the sairat source and number of the sairat case were to be reflected in the envelope. On 05.11.2021 at 11.00 p.m. scrutiny of the applications for opening of the bids in presence of the lease applicants or their authorized representatives was to be conducted and incomplete applications were to be rejected. Applications received after 5.30 p.m. of 03.11.2021 were not to be taken into consideration. The Competent Authority and the Collector, Gajapati shall have the right to cancel or suspend the auction without assigning any reason thereof.

2.1 Pursuant to the auction notice, as referred above, the petitioner made his application in Form-M, along with the required documents, in respect of “Khandava Sand Quarry”, which was mentioned at sl. no. 14 of the details of the Sairat Sources of the notice dated 20.09.2021, within the time specified. The petitioner along with 9 others participated in the auction process. The petitioner quoted additional charges of Rs.156/-per Cum of sand. Out of 9 participants, 6 participants had quoted more additional charges than the additional charge quoted by the petitioner, but they were disqualified as they had not adhered to the conditions stipulated in the notice. Form-F was issued in favour of the petitioner directing him to deposit Rs.40,000/- towards cost of preparation of Mining Plan and for execution of agreement supported by deposit of security money, as envisaged under Rule 43 (1) of the OMMC Rules, 2016. The petitioner deposited such amount, which was duly acknowledged by the authority. On 04.02.2021, opposite party no.4 issued notice to the petitioner to submit pre-feasibility report and other required documents, before the Competent Authority for grant of environment clearance, which was under progress.

2.2 At that point of time, the petitioner was served with the letter of cancellation of his bid in respect of Khandava Sand Quarry by the Tahasildar, Kashinagar, vide Annexure-6 dated 20.12.2021, wherein the petitioner was intimated that the Collector, Gajapati-cum-Controlling Authority had cancelled the bid of Khandava Sand Quarry dated 05.11.2021 as per Rule 27 (10) of the OMMC Rules, 2016, owing to the reason as communicated by the Additional District Magistrate, Gajapati, vide letter dated 17.12.2021, that the bid amount quoted by the petitioner was comparatively very less in comparison to the sources in the vicinity. Therefore, selection of the petitioner, as the highest bidder in respect of Khandava Sand Quarry, was cancelled.

3. Mr. S.K. Dalai, learned counsel ap