'At Least, Money Will Come To Govt' : Supreme Court Allows Orissa Minerals Development Corporation To Dispose Ores

The Supreme Court on Thursday allowed Orissa Minerals Development Co Ltd to dispose of the iron ores from the mines in Odisha.

A Bench comprising the Chief Justice of India NV Ramana, Justice Krishna Murari and Justice Hima Kohli was considering applications filed by Orissa Minerals Development Co. Ltd. (in respect of Belkundi Iron Ore Mine and Bagaiburu Iron Mines) seeking to dispose of the undisposed lying mined material. The applications were filed in a 2014 PIL moved by the NGO Common Cause.

Advocate Prashant Bhushan, appearing for the petitioner, submitted that several applications have been filed by private companies and state corporations seeking permission to sell material lying on the site and the court may ask some body like the Central Empowered Committee (CEC) to examine if the material that is lying was mined legally or not.

Responding to Mr Bhushan's statement that it is possible that the lying material was mined illegally, the Bench pointed out that the company being referred to is a Government company.

Bhushan informed the court that even Government companies were fined heavily for conducting illegal minings.

Solicitor General Tushar Mehta clarified that the compensation was paid in respect of mining which was treated as unauthorized.

"The reason why mining was stopped and orders were passed was because mining was carried out completely in violation of laws and without environmental clearance", Mr Bhushan said

"We have allowed private parties, doesn't look nice to stop Government Organisations. At least here, the money will come to Government", CJI said

Mr Bhushan then agreed and submitted that court may allow the government companies to dispose the material.

The Bench therefore allowed OMDC's application after considering the submissions made by Solicitor General Tushar Mehta, who submitted that court had earlier permitted the resumption of mining by the company and the State has no objection to the same.

The Supreme Court of India had in 2014 suspended the mining operations in Orissa in the present PIL. The development had come after the court had passed orders in illegal mining operations in the State of Karnataka and Goa.

The court has since then heard several applications and passed orders with regard to mining operators and lease owners seeking resumption of mining operations, sale of the already mined material etc

On 6th January 2020, the court while hearing application filed by the holder of a mining lease in respect of Bholbeda Iron Ore Mines seeking to sell the material, had appointed Justice Bijoy Krishna Patel, Chairperson, Odisha Human Rights Commission and Justice S.C. Parija, Former Judge, Odisha High Court as Members of the Committee to supervise the sale of such material. 

Under the supervision of the Committee and with assistance of concerned authorities of the State of Odisha, the applicants were permitted to sell and remove the material already mined and the committee was directed to ensure that no mining operation is undertaken under the cover of court's Order.

It was directed that the sale proceeds would go directly to the treasury of the State Government to be adjusted towards compensation.

Through its order dated 11th August 2020 the Supreme Court had permitted the Orissa Minerals Development Company to resume mining operations subject to all necessary clearances required in accordance with law being obtained.

The Competent Officers of the State of Orissa were directed to conduct a joint verification of the undisposed stock and allow sale of the same by the OMDC on following due procedure.

Background: The present PIL was filed by NGO Common Cause in 2014 against the "loot and plunder of valuable natural resources" in the State of Odisha in complete disregard of the environmental norms and the rights of the vulnerable tribal & rural communities.

The petition had relied upon Justice M B Shah Commission of Inquiry, which had given scathing reports on the unfortunate state of affairs in Odisha that called for immediate compliance of its recommendations.

When the writ petition was heard by the Supreme Court on 21.04.2014, the Court had prima facie found that that several mining lessees were operating without clearances under the Environment (Protection) Act, 1986 and the Forest (Conservation) Act, 1980, and without renewal by the Government.

Since the Court had found that an interim order needed to be passed in respect of the lessees who are operating the leases in violation of the law, the Court had directed the Central Empowered Committee ( CEC) to make out a list of such lessees who are operating the leases in violation of the law and granted liberty to the parties to produce their papers before the CEC and also directed the State of Odisha and the Union of India will cooperate with the CEC to prepare the list.

Case Title: Common Cause vs Union of India & Ors