Friday, 5 October 2012

SC asks Category B mines to pay compensation for illegalities

Mahesh Kulkarni / Bangalore Oct 05, 2012,
Business Standard
The Supreme Court of India has directed 63 Category B mining leases in Karnataka to pay compensation for illegal mining outside the sanctioned area before allowing them to restart operations.

In its latest order issued on October 1, the apex court has accepted the recommendations of amicus curiae Shyam Divan. The three-member forest bench headed by judge Aftab Alam passed directions as an absolute first step before considering resumption of operations by Category B mines.

The Supreme Court, in its orders dated July 29, 2011 and August 26, 2011, had imposed a ban on mining operations in all the leases (except two leases of NMDC) in the districts of Bellary, Chitradurga and Tumkur. Later, the ban was lifted and permission given for resumption of mining operations in some Category A mines, subject to conditions.

The court said each of the leaseholders must pay compensation for the areas under illegal mining pits outside the sanctioned area, as found by the joint team and recommended by the Central Empowered Committee (CEC) at the rate of Rs 5 crore a hectare. For the areas under illegal overburden dumps, roads and offices, among others, outside the sanctioned lease area, the rate is Rs 1 crore a hectare.

Category B leases were found to have done illegal mining outside the sanctioned areas up to 10 per cent of the lease areas. Overburden dumps outside the sanctioned lease areas have been found to be up to 15 per cent of the lease areas.

“It is made clear that the payment at the rates aforesaid is the minimum payment and each leaseholder may be liable to pay additional amounts on the basis of the final determination of the national loss caused by the illegal mining and the illegal use of the land for overburden dumps, roads and offices, among others,” the Court said.

Each leaseholder, besides making payment as directed, must also give an undertaking to the CEC for payment of the additional amounts, if held liable on the basis of the final determination.

The court also directed constitution of a committee to determine the amount of compensatory payment to be made by each of the leaseholders, having regard to the value of the ore illegally extracted from forest or non-forest land falling within or outside the sanctioned lease area. It will also determine the profit made from such illegal extraction and the resultant damage caused to the environment and ecology of area.

“We are happy that the court has accepted one of our submissions for forming a committee to assess the extent of ore illegally extracted by leaseholders. The miners should be asked to pay the actual cost of illegal ore back to the government,” said Vishnu Kamath, co-petitioner in the suit against illegal mining.

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