The composition of the District Mineral Foundation must include only members from Gram Panchayats directly affected by mining operations, ensuring compliance with statutory provisions and preventing unlawful inclusions.

JUDGMENT :

HARISH TANDON, C.J.

An interesting point is raised in the instant writ petition on the composition of the District Mineral Foundation for the district of Jajpur in terms of Section 9-B of the Mines and Minerals (Development and Regulation) Act, 1957 (for short, “MMDR Act”) read with Rule 4 of the Odisha District Mineral Foundations Rules 2015 (for brevity, “ODMF Rules”). The writ petition is filed by the petitioners assailing the Notification No.10593— PT1-PC-DMFC-DMF- 0021-2024/P, dated 24^th July, 2025 whereby and whereunder, the Government reconstituted the Board of Trustees called “the District Mineral Foundation for the District of Jajpur”. The said notification reveals 17 persons who will be the constituent of the said District Mineral Foundation which includes the Sarpanch of Pimpudia Gram Panchayat, Sarpanch of Haripur Gram Panchayat and Sarpanch of Dhuligarh Gram Panchayat.

2. It is specifically averred in the instant writ petition that since the mines are situated within the territorial jurisdiction of Kaliapani Gram Panchayat, Kansa Gram Panchayat and Ransol Gram Panchayat, inclusion of Sarpanch of the other Gram Panchayats as aforesaid, is contrary to Rule 4 of the ODMF Rules.

3. Before we proceed to decide the matter, it would be profitable to quote Section 9-B of the MMDR Act, 1957 and Rule 4 of the ODMF Rules, 2015 which run thus:

“Section 9-B.

District Mineral Foundation.―

(1) In any district affected by mining related operations, the State Government shall, by notification, establish a trust, as a non-profit body, to be called the District Mineral Foundation.

(2) The object of the District Mineral Foundation shall be to work for the interest and benefit of persons, and areas affected by mining related operations in such manner as may be prescribed by the State Government.

(3) The composition and functions of the District Mineral Foundation shall be such as may be prescribed by the State Government.

Provided that the Central Government may give directions regarding composition and utilisation of fund by the District Mineral Foundation.

(4) The State Government while making rules under sub-sections (2) and (3) shall be guided by the provisions contained in Article 244 read with Fifth and Sixth Schedules to the Constitution relating to administration of the Scheduled Areas and Tribal Areas and the Provisions of the Panchayats (Extension to the Scheduled Areas) Act, 1996 (40 of 1996) and the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 (2 of 2007).

(5) The holder of a mining lease or a [composite license] granted on or after the date of commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015 other than those covered under the provisions of sub-section (2) of section 10-A, shall, in addition to the royalty, pay to the District Mineral Foundation of the district in which the mining operations are carried on, an amount which is equivalent to such percentage of the royalty paid in terms of the Second Schedule, not exceeding one-third of such royalty, as may be prescribed by the Central Government.

(6) The holder of a mining lease granted before the date of commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015 and those covered under the provisions of sub-section (2) of section 10-A, shall, in addition to the royalty, pay to the District Mineral Foundation of the district in which the mining operations are carried on, an amount not exceeding the royalty paid in terms of the Second Schedule in such manner and subject to the categorisation