Karnataka High Court has recently issued an order relating to collection of District Mineral Foundation (DMF) Fund and National Mineral Exploration Trust (NMET).
As per the order issued on 24 May’16, only 90% of the sale price would be paid to the buyer and the 10% of the amount is to be retained by the Monitoring Committee towards the levies, there shall be an interim direction to permit the petitioner to participate in the e-auction process without the pre-deposit of the royalty demanded.
However on the sale price determined in the e-auction is finalized, the Monitoring Committee is directed to recover the amount or such other amount representing all the levies including the amount payable towards the Mineral Exploration process and the District Mineral Foundation and only the remaining amount shall be paid to the buyer.
In talk with SteelMint, market participants shared that the order still lacks clarity and further clarifications on collection of DMF are still awaited.
Indian govt. on 17 Sept’15 announced the launch of Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) as a measure to support the project affected people, using the funds generated by District Mineral Foundations (DMFs).
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