India: HC refuses to stay Goa govt notices to former iron ore lessees

A division Bench of the High Court of Bombay at Goa has dismissed petitions of the state's former lessees against a government order asking them to clear their mines. The HC order, reserved on 19 August 2022, pronounced today comes as a relief to the state government which has decided to auction these areas.

The government had issued notices to the incumbent lessees under Rule 12(1)(hh) of the Minerals (Other Than Atomic and Hydrocarbons Energy Minerals) Concession Rules, 2016 - a provision that gives the lessee a month to clear material and equipment - on 4 May 2022 in a formal step towards freeing these areas of any claim. Lithoferro, a mine run by Fomento Resources, Vedanta and Sesa Resources, Sociedade de Timblo, VM Salgaocar and EMCO were among the many who had moved the HC against this order.

The HC refused to stay the state's notices, stating that the petitioners had exhausted their reasoning in the past cases they had filed in the High Court and Supreme Court. The old lessees had argued that Section 8A(6) of the MMDR Act amended in 2015 (between the two landmark SC judgments with respect to Goa's mines) had been extended to lease holders across the country, but not Goa. This would extend their leases from 1987 to 2020 or 2037.

The 79-page order notes a petition filed by Vedanta and the state's Review Application (in the SC) had offered this as an argument but which too has been dismissed "not only on the ground of limitation but on merits as well."

In a press note, Goa Foundation which had been a party to the case, claimed some credit for the state notices pointing out that in October 2021 it had already filed a writ petition against the Goa government demanding notices (freeing these leaseholds) be issued as a natural follow up to specific directions of the Supreme Court of India (in the case of Chougule II). The HC's order concluded, "since we have not extended the benefit of Section 8A of the MMDR Act to the petitioners, we reject the prayer to quash and set aside the notices issued under Rule 12(1)Chh) of the said Rules, then issued pursuant to order in Chougule-Il.

Some of the petitioners SteelMint spoke to said they were still considering whether they would move the SC again.

~ By Meera Mohanty