BY THE COURT:

The petitioner, while asserting that he is appointed as an “Agent” by the Khasi Hills Autonomous District Council (‘the KHADC’ or ‘the Council’ hereafter) for setting up and operating the so called “KHADC’s Mineral Transport Challan Check Point/Royalty Check”, has filed this writ petition on the grievance that the officers of the Government of Meghalaya were illegally interfering with the Check Points managed by him; and has sought the reliefs in the following terms:-

“In the premises, it is prayed that your Lordship would be pleased to admit this petition, call for the records, issue rule calling upon the respondents to show cause as to why the writ of mandamus should not be issued to hold that the arbitrary interference by the State respondent particularly the Deputy Commissioner, West Khasi Hills, Nongstoin, Meghalaya and respondent Director of Mineral Resources into the running of the Check points managed by the writ petitioner for verifying the mineral transport challan/royalty challan from the coal laden vehicle originating in the territory of the Khasi Hills Autonomous District Council as illegal and unconstitutional and as to why the writ of certiorari should not be issued to direct the respondent Chief Secretary, Government of Meghalaya, Shillong, respondent Director of Mineral Resources and respondent Deputy Commissioner, West Khasi Hills District, Nongstoin, Meghalaya not to interfere with the running and management of Mineral Transport Challan/Royalty Challan checkpoint at the designated points namely (i) Nongktieh (Manai) exiting to NH 40, (ii) Athiabari exiting to Assam and (iii) Nongsharam exiting to Garo Hills an onward to Assam as well as the designated point at South West Khasi Hills District, Meghalaya to verify/checking the mineral transport challan/royalty challan from the mineral/coal laden vehicles/trucks carrying extracted coal originating from the territory of the Khasi Hills Autonomous District Council and pass any other order/orders as your Lordship deem fit and proper under the circumstance of the case.”

The petitioner has referred to paragraph 9 of the Sixth Schedule to the Constitution of India, governing the grant of licenses and leases for the purpose of prospecting for, or extracting of, minerals; and has submitted that thereunder, the Government of State and the District Council of the area in question are sharing the royalty on the minerals extracted and removed. The petitioner has pointed out that such sharing of royalty between the Government and the KHADC had earlier been in the ratio of 60:40 and at present is in the ratio of 75:25 from the royalty collected within the jurisdiction of the KHADC. According to the petitioner, the Comptroller and Auditor General of India (CAG) pointed out in the report dated 31.03.2013 that the State Government had failed to set up a mechanism to determine the mineral extracted and as a result, as between the years 2008-09 to 2012-13, there were huge losses, including short realization of revenue to the tune of Rs.81.40 crores, due to the failure of the Director of Mineral Resources to periodically assess the performance of the check gates that led to leakage of revenue at many check points and weighbridges. The petitioner has also pointed out that the CAG had recommended to the State Government for improvement and overall restructuring of the management of the check gates.

The petitioner has further averred that in view of massive leakage of royalty/revenue coupled with illegal transportation of extracted coal without payment of royalty as well as diversion of royalty to the Jaintia Hills District and Garo Hills District by the vehicles carrying the extracted coal from its jurisdiction, the KHADC, being one of the key beneficiary of the collection of royalty under paragraph 9 of the Sixth Schedule to the Constitution of India, issued a Public Notice dated 10.12.2015, inviting the interested persons for being appointed as its “Agents” for setting u