1. Leave granted.

2. These appeals are directed to resolve mutually inconsistent law adumbrated by two Division Benches of Andhra Pradesh High Court. The appeals arising from S.L.P. (C) No. 17080-81/95 are filed against the judgment passed on April 28, 1995 in Writ Petition Nos. 9513/93 and 7725/94 (reported in 1996 AIHC 316 (Andh Pra)) in which the Division Bench has held that the Andhra Pradesh Scheduled Area Land Transfer Regulation (1 of 1959), as amended by Regulation 2 of 1970 (for short, the 'Regulation') and the Mining Act (67 of 1957) do not prohibit grant of mining leases of Government land in the scheduled area to the non tribals. The Forest Conservation Act, 1980 (for short, the 'FC Act') does not apply to the renewals. The Andhra Pradesh Forest Act, 1967 also does not apply to the renewal of the leases. It, accordingly, dismissed the writ petitions filed by the appellant challenging the power of the Government to transfer the Government land situated in the tribal area to the non tribals for mining purpose.

3. In the appeal arising from S.L.P. (C) No. 21457 of 1993 filed by Hyderabad Abrasives and Minerals, another Division Bench, earlier had taken dramatically the opposite view and held that mining leases are illegal. The word 'person' used in S.3 of the Regulation includes Government. Any lease to the non tribals even of a Government land situated in scheduled area is in violation of S.3 and so is void. Equally, it held that a mining lease in a forest area for non forest purpose or renewal thereof, without prior approval of the Central Government, is in violation of S.2 of the FC Act. Accordingly, the Division Bench directed the Government to prohibit mining operations in scheduled area except that the mines stacked on the surface be permitted to be removed after obtaining proper permits. This decision, though earlier in point of time, was not brought to the notice of later Bench mentioned above.

4. The admitted facts are that Borra reserved forest area along with its environs consisting of 14 villages, is the notified scheduled area in Ananthagiri Mandal of Visakhapatnam District of Andhra Pradesh. The State Government granted mining leases in this area to several non tribal persons. K. Appa Rao, respondent No. 13, was granted mining lease in that reserved forest area. Most of the area granted to M/s. Perolase India Ltd., respondent No. 7 falls in reserved forest area. M/s. Unirock Minerals Pvt. Ltd., respondent No. 8 had 125.30 acres in the reserved forest area and 45.70 acres in the non reserved forest area. M/s. Kalyani Minerals, respondent No. 10 had 48.00 acres in the reserved forest area and 32 acres in non reserved forest area. One M. Seetharama Swamy was granted mining lease of an extent of 300 acres in Borra reserved forest area. Sri R. K. Deo is also having mining lease in that area. Respondent No. 9 is said to be the legal heir of M. Seetharama Swamy. These facts are admitted in the counter affidavit filed by the Government.

5. It is also an admitted fact that Ananthagiri Mandal in which the mining areas are situated, is within the scheduled area. The tribal people from tribal groups are inhabiting therein. Two mining leases were granted to the Chalpati Rao, respondent No. 11 for graphite to an extent of 50 acres in Nandkote Reserve Forest for a period of 20 years on August 26, 1971. The lease deed was executed on January 24, 1972 and expired on January 23, 1992; it is stated that thereafter mining operations are not being carried on. Similarly, mining lease for an extent of 111 acres of land situated in Chimidipalli and Saripalli villages of Ananthagiri Mandal, was granted on August 29, 1974. The lease was executed on December 20, 1974 for a period of 20 years which expired on December 19, 1994. Mining lease for Andhra Phosphates (P) Ltd. was granted to an extent of 271.544 hectares in Y. Seetharampuram, Veduruvada Reserved Forest on March 23, 1957 for 20 years. The lease deed was executed on June 1