In the latest update on the case hearing regarding illegal iron ore mining in the state of Odisha, SteelMint learned from its market participants that final judgment which was expected to be out in mid Jul’17 has been deferred till 1st week of Aug’17.
In a common cause notice issued to Odisha based merchant miners, they were alleged of excess production beyond the granted EC (Environmental Clearance) limits.
This violation in law and both CEC as well as the Union of India has recommended that it may be appropriate that 30% of the notional value of the iron and manganese produced by each of the lessees without/excess of the EC’s may be directed to be recovered from the concerned lessees and that such compensation may be directed to be paid within a period of three months.
However the miners in addition to Royalty, have also paid all other direct and indirect taxes on the said production. Further,the cost incurred by them towards extraction of ore should also be taken into consideration as the same has not been considered by the CEC in its report. Therefore, it was further requested that the amount should not be treated as a penalty but be treated as a ‘compensatory’ payment.
Another specific issue involved in the case hearing is impact of Rule 37 of the Mineral Concession Rules, 1960. Rule-37 of Mineral Concession Rules debars any lessee to assign, sub-let, mortgage or in any other manner transfer the mining lease or any right, title or interest therein without previous written consent of the state government.
Lastly, request was also submitted so that the Court shall grant reasonable time to enable the miners to pay by way of installments the amount of compensation ultimately awarded by this Hon’ble Court.
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