Bandekar Brothers losses rights on iron ore inventory

Goa-based Bandekar Brothers has lost its rights on iron ore purportedly mined before November 2007.

The Supreme Court today rejected the plea of the company citing provisions under the mineral rules.

The company had approached the court asking it to prevent the e-auction of the ore, which was lying at the pitheads but was not utilised. It wanted the ore to be released for disposal as the company liked.  

The company had claimed ownership of the iron ore and also claimed to have extracted it before November 22, 2007.
 
Under the mining rules, excavated ore should be removed within six months. If the extracted ore is not removed within a month of the state government issuing a notice in writing to the lesse, it becomes the property of the state government.
 

The order dismissing the petition came from a three-judge bench headed by Justice J S Khehar. Though the order had no bearing on Sesa Sterlite, the company’s stocks fell by about 13 per cent over previous day’s close to Rs 219.45 in the morning but recovered subsequently to close at Rs 249.45, after the company issued a clarification.

“It is being clarified that today’s developments in Supreme Court does not relate to Sesa Sterlite,” the Vedanta group company said.

The state had suspended mining operations in September 2012. Later, the Ministry of Environment and Forests had suspended environment clearances for mining in the state.

 
The court had in November 2013 also ordered the state government to verify an inventory of the excavated mineral ore lying in different mines, stockyards, ports and jetties in Goa and to sell the inventorised ore in an e-auction. The auctioning was monitored by a committee and the sale proceeds were retained in a separate account.