Mines & Minerals Act | Vehicle Can Be Released On Furnishing Bond Of Amount Equal To Present Value If Confiscation Proceedings Aren't Initiated: Rajasthan HC

The Rajasthan High Court laid down rules for the release of vehicles that have been seized under the Mines and Minerals (Development and Regulation) Act, 1957 (“MMDR Act”).

The Court held that if confiscation proceedings get initiated under the Act, then the vehicle(s) in question can be released only on payment of the penalty amount and the compounding fees.

However, if no such proceedings have begun and only an appeal has been filed against the penalty/compounding order passed by the mining officer, then the petitioner shall be granted liberty to approach the competent court to get the vehicle released which can be allowed on the petitioner furnishing a bond or a bank guarantee for an amount equaling to the current value of the impounded vehicle.

A bench of Justice Arun Monga was hearing a petition filed by an individual whose tractors were impounded under the MMDR Act. When this order was challenged, the vehicles were allowed to be released but only on furnishing of bank guarantee equaling to the fine/compounding amount imposed by the mines/NGT department. When revision petition was filed against this order, the same was dismissed. Hence, the individual filed the present petition before the Court challenging both the orders.

The Judge referred to an earlier order passed by him on similar issue where it was held that, “In case, the confiscation proceedings have been initiated, the vehicle shall then be released only on payment of penalty and compounding fee, in terms of ratio rendered in Kishore Singh. However, if it is found that no confiscation proceedings have yet commenced and it is merely an appeal is pendency against the penalty/compounding order passed by mining officer, liberty in that case is granted to the petitioner to approach the competent Court by filing a fresh application for release of vehicle on Superdari. Upon doing so, the same shall be released on furnishing a bank guarantee of an amount equivalent to the current value of impounded vehicle.”

The Court thus observed that the tractors of the petitioner had been parked in police custody for a long time and would turn into complete junk if left in that condition.

In this light and in background of the aforesaid order, the Court held that if confiscation proceedings were initiated, the tractors should be released only on payment of penalty and compounding fees, but if not, then the petitioner may approach the competent court for release of the vehicle after furnsihing a bond or bank gauarantee of similar value.

Title: Sanjib v State of Rajasthan & Anr.

Citation: 2024 LiveLaw (Raj) 198

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