HC asks state to dispose mine lease renewal cases

Declines to stay operation of mines under 'deemed extension' provision

The Odisha High Court (HC) has directed the state government to dispose of all applications for renewal of mining leases within three months.

The court gave this direction while hearing to a public interest litigation filed by Biswajit Mohanty on irregularities in renewal of mining leases and prayer for repeal of the Rule 24-A (6) of the Mineral Concession Rules (MCR), 1960, which allowed operation of mines under “deemed extension” clause in the event of delay in lease renewal.

HC, however, declined to pass a stay order on the operation of the mines under deemed extension provision, saying it has to examine the constitutional validity of such an action.

 

“The HC has asked the Odisha government to dispose of all applications for mining lease renewal within three months. If there is any defect in the application, the state government has to notify the party,” said Aditya Das, counsel for petitioner.

According to the petition filed by Mohanty, there were 323 applications for mining lease renewal while the state steel & mines department claimed there are 50 leases operating under deemed extension.

The Odisha HC on Wednesday, while admitting the PIL seeking repeal of controversial deemed extension clause of MCR, 1960, had issued notices to the state and Union government for responses.

Under Section 24 A clause 6 of MCR, if a miners has applied for lease renewal a year before the lease expiry and the state government fails to expedite renewal applications within due date, then the miner will be considered to be operating the mine under extension of lease validity.

The petitioner said that many miners are operating under this provisions with the connivance of state government officials and in some cases the deemed extension period goes beyond 20 years after lease expiry.