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2026 Supreme(Online)(Kar) 21100

THE HIGH COURT OF KARNATAKA
Vibhu Bakhru, CJ, C.M. Poonacha, J
V. Venkateshulu – Appellant
Versus
Secretary Ministry of Mines Government of India – Respondent
WRIT PETITION NO. 13296 OF 2022



Advocates:
For the Appellants/Petitioners: Bhat Ganapathy Narayan
For the Respondents: Desai Sharanabasappa Viranna, Niloufer Akbar

A mining lease holder is not entitled to a 'deemed extension' under the MMDR Act if they have failed to resume mining operations for a continuous period of two years or violated mandatory lease conditions such as the implementation of an R&R plan and payment of required compensation.

Headnote:(A) Mines and Minerals (Development and Regulation) Act, 1957 - Section 4A(4), Section 8A - Mineral (Other than Atomic and Hydrocarbons Energy Minerals) Concession Rules, 2016 - Rule 36 - Mining lease - Deemed extension - Eligibility for extension depends on compliance with lease conditions - Persistent failure to conduct mining operations for over two years constitutes a lapse - Disentitlement to benefit under deemed extension provisions where lease has suffered a lapse.

Facts of the case:
The petitioner, a holder of a mining lease, failed to carry out mining operations and comply with restoration and recovery (R&R) requirements despite the Supreme Court allowing resumption of operations in 2013. Following non-compliance with statutory notice and failure to pay compensation/guarantee amounts, the State authorities declared the lease ineligible for extension under the amended MMDR Act, leading to the current challenge.

Findings of Court:
The court held that the petitioner violated lease conditions by failing to resume mining activities for over two years, failing to implement an R&R plan, and refusing to pay the demanded compensation. Consequently, the lease had suffered a lapse, disentitling the petitioner to the benefits of deemed extension provided under the MMDR Act.

Issues: Whether the petitioner is entitled to a deemed extension of the mining lease despite failing to resume operations or fulfill statutory conditions since 2013.

Ratio Decidendi: Under the MMDR Act, specifically sections 4A(4) and 8A(9), a leaseholder who fails to conduct mining operations for a continuous period of two years without seeking prescribed extensions or complying with mandated restoration plans loses the right to claim deemed extension, and previous findings by survey teams regarding lease boundaries and illegal mining reach finality.

Result: Petition dismissed.

Table of Content
1. overview of the petition, factual background, and the regulatory history of the petitioner's mining lease. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8)
2. summary of primary contentions regarding deemed extension vs. state justification for dismissal. (Para 9 , 10)
3. judicial finality regarding lease boundaries and the failure to comply with r&r obligations. (Para 11 , 12 , 13 , 14 , 15 , 16)
4. application of sections 4a(4) and 8a(9) of the mmdr act regarding the lapse of mining leases and denial of extension. (Para 17 , 18 , 19 , 20 , 21 , 22 , 23 , 24)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASHING THE ORDER IN SL NO-CI45MMM2016 DATED 10.06.2020 PASSED BY THE RESPONDENT NO.3 (ANNEXURE-J) AND QUASHING THE ORDER IN REVISION APPLICATION NO-13/03/2020/RC-1 DATED 06.05.2022 PASSED BY THE RESPONDENT NO.2 (ANNEXURE-N) TO THE EXTENT OF THE DISENTITLEMENT OF THE PETITIONER FOR DEEMED EXTENSION & ETC.

THIS WRIT PETITION HAVING BEEN HEARD AND RESERVED FOR ORDERS, COMING ON FOR PRONOUNCEMENT THIS DAY, ORDER WAS PRONOUNCED AS UNDER:

CORAM: HON'BLE MR. VIBHU BAKHRU ,CHIEF JUSTICE

and

HON'BLE MR. JUSTICE C.M. POONACHA

C.A.V. JUDGMENT

(PER: HON'BLE MR. JUSTICE C.M. POONACHA)

1. The present writ petition is filed calling in question the order dated 10.06.2020 passed by the respondent No.3 - Principal Secretary, Department of Commerce and Industries (MSME & Mines), State of Karnataka and the order dated 06.05.2022 passed by respondent No.2 - Joint Secretary, Ministry of Mines, Government of India. The petitioner also sought for a direction regarding deemed extension of ML No.2368.

2. The relevant facts in a nutshell leading to the present petition are that the petitioner is the holder of a mining lease (ML No.2368) in respect of an extent of 56.739 Ha (140.20 acres) in Sy.No.326 of Janekunta Village, Ballari Taluk [subject property] for mining iron ore, yellow ochre, red ochre and quartzite for a period of 20 years from 26.07.2002. The Supreme Court vide order dated 25.02.2011 [passed in WP No.562/2009: Samaj Parivartana Samudaya Vs. State of Karnataka] directed the Central Empowered Committee [CEC] to submit a report on the alleged irregularities in mining operations. Based on the report of the CEC, vide order dated 06.05.2011, the Supreme Court constituted a joint team to conduct survey and demarcation of 99 mining leases in Bellary District, inter alia, to ascertain regarding the extent of encroachment in the adjacent forest/revenue areas and to assess the quantum of illegal mining. Vide order dated 29.07.2011, the Supreme Court ordered a complete ban on mining in Bellary District. The said ban was extended to all iron ore mining leases in Tumkur and Chitradurga districts also by order dated 26.08.2011. The joint team conducted survey of all iron ore and mining leases in the aforementioned three districts.

3. Vide proceedings dated 08.09.2011, the joint team found encroachment beyond the leased area by the petitioner by way of mining pits to the extent of 2.45 Ha; by way of dumps to the extent of 2.17 Ha; and other encroachments to the extent of 11.05 Ha [totaling 15.67 Ha].

4. Pursuant to order dated 23.9.2011 of the Supreme Court, issues raised by the lessees regarding survey conducted by the joint team were heard by the CEC in the hearing held on 01.12.2011, wherein the issues raised by the petitioner were also considered. The CEC in its report dated 03.02.2011 filed to the Supreme Court, placed the mining lease of the petitioner in category B. The CEC did not find any reason to modify/review the findings of the joint team relating to the mining lease of the petitioner, which was accepted by the Supreme Court.

5. The Supreme Court vide judgment dated 18.04.2013 specified conditions for resumption of mining operations in Category B mining leases (which are applicable to the petitioner) wherein it was ordered that in order to resume mining operations, the lease holders were re

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