Summary
In the Bellary illegal-mining writ petition under Article 32, the Court had in 2011 banned mining in Bellary, Chitradurga and Tumkur, directed sale of excavated iron ore only through e-auctions by a Monitoring Committee with 10%/20% of the sale value going to a Special Purpose Vehicle for environmental remediation, and banned export of iron ore and pellets from the three districts. Lessees, pellet makers, KIOCL and NMDC applied to sell stock directly and to export; the CEC and the Ministries of Steel and Mines supported them, while the petitioner, Karnataka steel manufacturers and the State opposed. The Court relaxed its order of 23.09.2011: direct and inter-State sale of excavated ore allowed without e-auction and export of ore and pellets permitted strictly under Government of India policy; lifting of production caps deferred for the Oversight Authority's opinion.
Issues
- Whether the directions of 23.09.2011 requiring excavated iron ore from mines in Bellary, Chitradurga and Tumkur to be sold only through e-auction conducted by the Court-appointed Monitoring Committee should be relaxed to permit direct and inter-State sale of the stock-piled ore.
- Whether the ban on export of iron ore and pellets produced from mines in the State of Karnataka should be lifted.
- Whether the district-level ceiling on iron ore production for category 'A' and 'B' mines should be lifted.
Provisions considered
- Article 32 (continuing mandamus in environmental public interest litigation), Constitution of IndiaExercising continuing supervisory jurisdiction in the writ petition, the Court reviewed the e-auction and export restrictions imposed in 2011–2013 as interim measures, having earlier said the system of sale through the Monitoring Committee could be reviewed after two years, and relaxed them in view of the changed situation. (¶¶ 1, 22, 25, 29, 30)
Held
- The blanket ban on mining and the e-auction regime were imposed because of rampant illegal mining that had ravaged the ecology of the region, and the e-auction under the Monitoring Committee was a transparent means of disposing of the accumulated stock-pile; the Court had itself contemplated review of that system after two years, and it was being revisited only after eight. Collections in the SPV exceeding Rs. 20,000 crores are adequate for the CEPMIZ activities. (¶¶ 24, 25)
- Agreeing broadly with the Ministry of Steel and the Ministry of Mines, a level playing field must be created between mines in the three districts and those in the rest of the country; the demand, supply and price of iron ore are best left to market forces. The situation prevalent before 2011 has changed for the better through course correction, environmental regeneration and Government measures, consecutive e-auctions have drawn a poor response with dismally low sales even at the reserve price, so the order of 23.09.2011 deserves to be relaxed and the restrictions on the manner of sale and price fixation removed. (¶¶ 23, 26, 27, 28, 29)
- The applicants are permitted to sell the already excavated iron ore stock-piled at mines and stock yards in Bellary, Tumkur and Chitradurga without resorting to e-auction, to enter into direct contracts including inter-State sales, and to export iron ore and pellets manufactured from ore produced in Karnataka, as in the rest of the country, strictly in terms of the extant policy of the Government of India. (¶¶ 30, 31)
- The prayer to lift the ceiling on iron ore production in the three districts is not decided; the Oversight Authority appointed on 21.04.2022 is requested to take inputs from stakeholders including the CEC and the Monitoring Committee and give its opinion, preferably within four weeks. (¶¶ 22, 32, 33)
Result
Applications disposed of as allowed to the extent indicated: the order of 23.09.2011 relaxed to permit sale of excavated iron ore from Bellary, Chitradurga and Tumkur by direct and inter-State contracts without e-auction, and export of iron ore and pellets from Karnataka mines permitted under extant Government of India policy; the issue of lifting the production ceiling listed for the second week of July 2022 after the Oversight Authority's opinion.