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ANJANI KUMAR MISHRA, JAYANT BANERJI
Deep Builders – Appellant
Versus
State Of Uttar Pradesh – Respondent
ORDER :
1. Heard Shri Syed Mohd. Fazal, learned counsel for the petitioner and learned Standing Counsel for the State-respondents.
This writ petition seeks a writ of certiorari for quashing the order dated 28.08.2021 passed by the third respondent, the District Magistrate/District Officer, Ghaziabad.
2. By this order and in purported exercise of powers conferred by Rule 34 (4) of the Uttar Pradesh Minor Minerals (Concession) (Forty Seventh Amendment) Rules, 2019 and for their non compliance, the security deposited by the petitioner as also the first instalment consequent to the issuance of Letter of Intent with regard to Plot Nos. 290M, 301M, 303M, 304M, 310M, 311M, 314M area 12.512 hectares has been forfeited in favour of the State.
3. The facts of the case briefly stated are that the petitioner participated in the bidding for grant of mining lease of ordinary sand for a period of five years over plots situated in Village Pachayra, Tehsil Loni, District Ghaziabad having a total area of 12.512 hectares. The auction was for a mining of annual quantity of 2,50,240 cubic meters of sand.
4. Since the bid of the petitioner was the highest, a Letter of Intent was issued in its favour on 3
The court established that forfeiture of security deposits and royalty payments requires explicit legal authority, which was absent in the relevant rules governing mining leases in Uttar Pradesh.
The court clarified the specific penalty that could be imposed for non-compliance with the mining plan provision within one month of receiving the Letter of Intent, and emphasized the requirement for....
The authority can forfeit a mining lease security deposit for non-payment of lease installments under the terms established in the lease agreement, affirming contractual obligations.
The authority must provide adequate reasons for the complete forfeiture of a security deposit, especially when a lesser penalty has been imposed and already paid.
Forfeiture of earnest money in mining lease applications is only permissible when there is evidence of false documentation; procedural requirements lacking a penal clause are considered directory.
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