No Permission Needed When Minerals Extracted From One's Property Aren't Transported, Only Liability Is To Inform Authorities & Pay Royalty: Kerala HC

Justice C. Jayachandran observed: “Needless to say that in case there is no transportation of the mineral required, the only liability of the petitioner is to intimate the competent authority as prescribed in Rule 106 and to pay royalty provided in the proviso to Rule 106(1).”

The petitioner wanted to dig a pond in his property for agricultural activities. To do that, he had to extract granite from there. Petitioner contended that the granite would be used for constructing the boundary walls of the pond. Anyways, there would be no transportation of the granite outside the premises. A stop memo was issued against this activity saying that it comes under Rule 104 of the Kerala Minor Mineral Concession Rules, 2015. Under the Rule, a permit/ lease had to be obtained.

The petitioner contended that Rule 106 is the one applicable in the case. He drew the attention of the court to Rule 104. He stated that 'extraction and transportation' are used conjunctively repeatedly in this provision. Further, in the main part of Rule 106, transportation is not mentioned. Only in the proviso, where transportation is mentioned does it say about issuing a transit permit. The petitioner argued that since in his case, there is no transportation of the granite, he need not apply for a permit. He just needs to inform the authorities about the excavation of granite.

Rule 106: Extraction of Minerals for special purposes: (1) In any case or class of cases such as construction of common facilities or residential building where extraction of minor mineral is inevitable as a part of the work, the person doing such work may be exempted from obtaining quarrying permit/ lease under these rules:

[Provided that before extraction of minor minerals, the person concerned shall intimate the competent authority his intention to carry out the works to be performed along with detailed proposal for excavation/ use/ transportation and shall furnish necessary documents as required by the competent authority in this regard. If the extracted mineral is used as building material in the property from where the same is extracted then the person concerned shall remit royalty fee for all minerals except ordinary earth and if extracted mineral including ordinary earth is to be transported outside the work site, the competent authority may issue special mineral transit passes after collecting the royalty.]

Explanation: For the purpose of this rule, “common facility” includes waiting sheds, public walls, public libraries and reading rooms, [recognized educational institutions] temples, churches, mosques used for public purpose.

The Court said that the expression “such as” at the beginning of Clause (1) of the Rule meant that cases other than 'construction of common facilities or residential building' can fall under the ambit of Rule 106. Once it falls under Rule 106 and there is no transportation of the minerals, the person is only liable to inform the authorities and pay royalty for the mineral used for construction.

The Court held that Rule 104 envisages a larger activity which requires permission from the government. It is unreasonable to think that State Government has to apply its mind and grant permission for extracting granite from residential property to dig a pond.

The Court added that it was up to authorities to ensure that no unauthorized transportation of the minerals takes place.

Counsel for Petitioner: Advocates P. M. Ziraj, Irfan Ziraj

Counsel for Respondent: Government Pleader Adv. Ajith Viswanathan

Case No: WP(C) 13425/ 2024

Case Title: Rajesh K. The District Geologist and Others

Citation: 2024 LiveLaw (Ker) 389

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