Andhra Pradesh High Court Quashes 20-Year-Old Granite Quarry Lease Citing Flawed NOC and Unresolved Title Disputes

AMARAVATI - In a significant ruling with major implications for the mining sector, the Andhra Pradesh High Court has quashed a quarry lease for valuable "Black Galaxy Granite," first granted in 2001 and renewed in 2022, declaring it illegal and arbitrary. The court found that the lease was granted without proper verification of title and in violation of its own prior directives.

The common order, delivered by Dr. Justice K. Manmadha Rao, allowed a batch of writ petitions filed by M/s B.A.S. Granites and Digumarthy Suresh Babu, who challenged the lease held by M/s Golden Granites over 6.78 acres in R.L. Puram Village, Prakasam District.

Background of the Decades-Long Dispute

The case revolves around a complex and protracted legal battle over land ownership and mining rights. In 2001, M/s Golden Granites was granted a quarry lease for 20 years by the Director of Mines and Geology. This grant was based on a No Objection Certificate (NOC) issued by the local Mandal Revenue Officer (MRO) in 2000.

The petitioners, M/s B.A.S. Granites, who also claim ownership over a portion of the land, challenged the lease. Their revision petition before the state government was dismissed in 2014, prompting them to approach the High Court. Subsequently, when the lease was renewed in favor of M/s Golden Granites in 2022, the petitioners filed another writ petition challenging the renewal.

Arguments of the Parties

Petitioners' Contentions: - Sri K.S. Murthy, Senior Counsel for the petitioners, argued that the original NOC was fundamentally flawed. It was issued despite a 2000 High Court order in W.P.No.7303/1993 , which specifically directed the District Collector to conduct a thorough inquiry into the numerous ownership claims over the land before issuing any NOC. - They contended that the MRO's NOC, issued without the Collector's mandated inquiry, was invalid. - The renewal in 2022 was also challenged as illegal, arguing that the authorities proceeded without resolving the underlying title disputes and without obtaining a fresh, valid NOC.

Respondents' Defence: - Sri B. Adinarayana Rao, Senior Counsel for M/s Golden Granites, countered that the petitioners' title claims were themselves sub-judice, with a civil suit for partition pending since 2006. - He argued that previous legal challenges to the NOC and the lease had been dismissed, and that civil courts had upheld their right to possession and quarrying. - The government pleader supported the renewal, stating that a government order (G.O.Ms.No.163 of 2017) exempts lease renewals from requiring a fresh NOC, and the Collector had directed the mining department to act accordingly.

High Court's Decisive Findings

Justice K. Manmadha Rao, after a thorough review of the case's long history, found merit in the petitioners' arguments. The court emphasized the binding nature of its earlier order in W.P.No.7303/1993 , which was intended to prevent the very conflict that ensued.

The judgment noted a critical observation:

"In view of the foregoing discussion, this Court observed that, the rights of the M/s Golden Granites were no way decided in the suit since the plaintiff failed to establish its rights over the said land. In any case, neither the petitioner herein nor its vendor were parties to that litigation. So, in the light of the above, the Prospecting Licence and quarry lease granted in favour of M/s Golden Granites are clearly illegal and are liable to be quashed."

The court concluded that the entire foundation of the lease—the NOC issued in 2000—was invalid as it bypassed the specific directions of the High Court. Consequently, the initial grant of the lease in 2001 and its subsequent renewal in 2022 were both deemed illegal.

Final Verdict and Implications

The High Court delivered a conclusive verdict: 1. WP Nos.30796 and 32252 of 2014 were allowed , setting aside the 2014 government order that had dismissed the petitioners' revision petition. 2. WP No.31072 of 2022 was allowed , declaring the 2022 lease renewal in favor of M/s Golden Granites as illegal and arbitrary. 3. The court directed the authorities to initiate necessary action against M/s Golden Granites for "misleading the Government" regarding its mining activities.

This judgment reaffirms the principle that administrative actions, especially the grant of valuable natural resource rights, cannot override judicial directives or proceed in the face of unresolved, bona fide title disputes. It serves as a stern reminder to state authorities to ensure due diligence and adherence to court orders before granting or renewing mining leases.