- Mineral-rich states, finance ministry fear revenue loss
- Court seeks compliance report from govt in 5 weeks
The Supreme Court has granted the Union of India a one-month extension to address the cascading impact of royalty on royalty in mineral pricing, as directed in its November 2024 ruling. The case, brought by Kirloskar Ferrous Industries Ltd, challenges the double taxation effect in the calculation of the average sale price under the MMDR Act.
A Bench comprising Justices J.B. Pardiwala and R. Mahadevan reviewed the Union’s affidavit outlining post-judgment actions, including public consultations and ministerial approvals. However, opposition from key mineral-rich states and the finance ministry, citing revenue loss concerns, has stalled progress. The government assured the court that a final proposal is now before the Cabinet Secretariat.
Citing past rulings, the court stressed that policy decisions cannot remain in limbo. The Union must submit a compliance report within five weeks, with a decision expected to impact India’s mining industry and auction-based leaseholders significantly.
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