Supreme Court cancels all mining leases in Goa

The Supreme Court on Wednesday scrapped the second renewal of iron ore mining leases given to 88 companies in Goa in 2015. The court ordered that fresh licences be granted through a bidding process.

The SC was responding to a public interest litigation (PIL) filed by Goa Foundation in 2015, questioning the lease renewal.

According to a report in Hindustan Times, the court said the government’s process of renewing the mining permits was “in violation of law”. It also directed setting up of a special investigation team (SIT), which would include a chartered accountant, for recovery of the money the companies made after mining permits were renewed.

Goa Foundation’s lawyer Prashant Bhushan had said the state’s policy did not conform to the apex court’s line on optimum utilisation of natural resources. The state government should have taken the auction route instead of renewing the permits, he said.

Defending the renewal, the Goa government said the leases were extended till 2020 under law.

NDTV reported that the government also pointed out that the apex court in an April 21, 2014, order, had allowed the “state to decide as a matter of policy in what manner mining leases are to be granted in the future”.

The court had said in previous judgments that only fresh leases were to be granted by the Goa government, not second renewals.

According to an Economics Times report, a bench of Justices Madan B Lokur and Deepak Gupta said that mining lease holders, who have been granted a second renewal in violation of its previous decision and directions, are granted time to manage their affairs and may continue mining operations till March 15 this year.

“However, they are directed to stop all mining operations with effect from March 16, 2018, until fresh mining leases (not fresh renewals or other renewals) are granted and fresh environmental clearances are granted,” the bench said.