The High Court of Bombay at Goa has reserved its order on whether prior environmental clearances, and permissions could be extended to iron ore mines being auctioned in the state.
Three of the five blocks tendered by the state’s Directorate of Mines and Geology currently have been extended provisions of Section 8B of the MMDR Act. The Section, introduced in 2021 for faster operationalisation of auctioned mines, allows the new lessee to operate under clearances granted to the block in the past — provided these clearances and permits were valid when the lease expired.
Sociedade De Fomento Industrial Private has contested the extension of this provision which it believes is a “misrepresentation” by the Goa government and in the teeth of past Supreme Court judgments. Ironically, the environmental action group, Goa Foundation, whose petition led to some of these landmark judgements and which has stood on opposite sides of Fomento in various courts is on the same side of this argument.
Fomento argues that Section 8B of the MMDR Act merely provides for extension and transfer of valid rights approvals, clearances, and licenses. The Section does not revive cancelled clearances. The Ministry of Environment and Forest, and Climate Change under the UPA kept all ECs granted to Goa’s mines under abeyance. The Ministry in 2018 lifted this order, which was, however, made void by the Supreme Court in the ‘Goa Foundation vs Sesa Sterlite Ltd’ case, dealing with 88 of Goa’s mines. The ministry then cancelled ECs issued to these leases.
Citing tender documents of Cudnem- Cormolem, one of the three blocks being auctioned as “non virgin”, Fomento pointed out that this cancellation “has been concealed”. Though the EC is annexed with the tender documents, the cancellation order is not. Its petition also points out that the SC has specifically held that Part A of the same Section of the MMDR Act, which would have extended lease terms to 2035 was not applicable to 88 leases in Goa renewed “illegally” according to the court.
The government has taken a position that clearances granted under 2006 EIA, valid for 30 years, could be extended. Goa Foundation, which filed an application for intervention in the matter disagrees.
Fomento’s petition explained that it was compelled to move the HC considering the very tight window for clarifications from the government which, under its NIT and tender conditions, was under no obligation to actually respond. In addition, the format of the bid letter requires the bidder to unconditionally accept and agree with the terms of the tender.
The state of Goa hopes to auction deposits other than the 88 contentious leases. The HC’s order will have implications on these too.
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