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The Supreme Court has cancelled the iron ore mining licences of six companies, including Monnet Ispat and Energy Ltd, in Jharkhand. The licences were for mining on 2,590 hectares in the Ghatkuri Hill, which has the second largest iron ore deposits in the State.
A two-judge Bench comprising Justices R. M. Lodha and H. L. Gokhale also scrapped the licences of Jharkhand Ispat, Prakash Ispat, Adhunik Alloys and Power, Abhijeet Infrastructure and Ispat Industries (now JSW Ispat Steel).
The apex court dismissed the appeal filed by these companies and upheld a 2009 order of the Jharkhand High Court that the Government has the right to reserve mines for public sector undertakings, including SAIL.
The licences were granted in 2006 by the Shibu Soren Government. They were then forwarded to the Centre for confirmation because a 1969 Union Government notification laid down that mining in the Ghatkuri Hill was reserved for PSUs and that licences could not be given to private companies.
Subsequently, the Madhu Koda Government withdrew these licences against which the companies moved the Jharkhand High Court.
Inherent right
The companies sought to know whether the Government could reserve mining rights in a particular region for PSUs and if leases granted to private companies can be withdrawn by a successor government.
The High Court ruled that the State is not only the owner of all mines and minerals but has the inherent right to reserve any area for the use of PSUs.
The High court, therefore, upheld the Jharkhand Government order withdrawing the licences. The companies then moved the apex court against this order.
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