PANAJI: The Supreme Court of India has cancelled all Goa's mining leases confirming what was long suspected -- that the decision of the Goa Government to ‘renew’ 88 mining leases instead of granting fresh leases -- was not in accordance with the directions of the Supreme Court’s order back in April 2014 which had meant that fresh leases be issued.
The court also ruled that “in principle, the decision of the State of Goa to not auction the grant of mining leases was flawed in that it did not serve the common or public or social good but primarily assisted in filling the coffers of private entrepreneurs” but also said that the State government was under “no constitutional obligation to auction the leases.”
The Supreme Court, however, stopped short of saying that the leases should henceforward be auctioned and only directed that the “State of Goa should take all necessary steps to grant fresh mining leases in accordance with the provisions of the Mines and Minerals (Development and Regulation) Act, 1957.
Two petitions were filed -- one by the Goa Foundation and another by four petitioners including Rama Velip, Tulsidas Shaba Velip, Abhijit Prabhudesai and Dinanath Gaonkar -- who had challenged the renewal of leases instead of granting fresh ones, the lack of an auction as well as the ignoring of a host of violations while renewing the Environmental Clearances.
“As a result of the decision, declaration and directions of this Court… the State of Goa was obliged to grant fresh mining leases in accordance with law and not second renewals to the mining lease holders,” the Supreme Court said.
“The second renewal of the mining leases granted by the State of Goa was unduly hasty, without taking all relevant material into consideration and ignoring available relevant material and therefore not in the interests of mineral development. The decision was taken only to augment the revenues of the State… The second renewal of the mining leases granted by the State of Goa is liable to be set aside and is quashed,” the Supreme Court bench of justices Madan Lokur and Deepak Gupta ruled.
The Supreme Court has however allowed the mining leaseholders who have been granted the second renewal in violation of the decision and directions of this Court “time to manage their affairs and may continue their mining operations till 15th March 2018.”
“However, they are directed to stop all mining operations with effect from 16th March 2018 until fresh mining leases (not fresh renewals or other renewals) are granted and fresh environmental clearances are granted,” the Supreme Court ruled.
The court also said that the Special Investigation Team (Goa Police) and the team of Chartered Accountants constituted pursuant to the Goa Grant of Mining Leases Policy 2014 give their report at the earliest and the State of Goa should implement the reports at the earliest, unless there are very good reasons for rejecting them while also directing the Goa government to take all necessary steps to expedite recovery of the amounts said to be due from the mining leaseholders pursuant to the show cause notices issued to them and pursuant to other reports available with the State of Goa including the report of Special Investigation Team and the team of Chartered Accountants.
The Government of Goa had renewed leases as it attempted to restart mining back in 2014, rather than resorting to grant of fresh leases which was the mandate of the earlier Supreme Court order.
The State government had claimed in its Grant of Mining Leases Policy of 2014 that judgment and order of the High Court virtually leaves no choice to the State Government, thereby to completely abandon the process of competitive [bidding] for earning the best revenue to the State Government referring to an order passed by the Bombay High Court at Goa which ‘directed’ the state government to ‘renew’ the leases.
The Bombay High Court had ruled that the decision of the Supreme Court “is not an impediment on the State of Goa in considering the applications filed by the petitioners before the High Court for a second renewal of the mining lease.”
“The expression ‘fresh leases’ of the decision of the Supreme Court is an affirmation of the
law that the renewal of a lease is also a fresh grant,” the HC had ruled.
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Politicians predict gloom
descending on the state
PANAJI: Ruling party politicians have feared that the indefinite shutdown in mining would have an adverse impact on Goa’s economy and have sought that measures be put in place to mitigate the effects.
Curchorem MLA Nilesh Cabral who is also the Chairman of the South Goa District Mineral Fund has said that the Supreme Court decision is “one-sided” and not correct and has suggested that the State government appeal to a higher bench as the process of starting mining in Goa from scratch could take years to complete.
“The SC order is going to have a very heavy impact on the remaining mining whatever is left in Goa. Personally, I feel that if mining does not continue the effect on the economy. In my constituency which is dependent on mining which was restarting little by little,” Cabral said.
He said that if the state would have to go for auctions they would first need to study how much each mine is worth before they can set the price and it would take years for such studies to complete.
“Right now mining industry has not started due to the global recession. This decision will again send all the mining industry to close the mines. In general, I am against the auction. There is no process defined. How much money will the government know that there is in the mine? The bidder should know what is there in the mine. This will take years to do to know what is there in the mine,” Cabral said.
“I believe that the SC should relook at it and give an extension period at least till 2027 and after 2027 there should be no renewal. In the meantime a full study should be done,” Cabral said.
PWD Minister Sudin Dhavalikar said that the government would need to plan for a long closure in mining and that a formal decision by the government would have to be taken.
Goa Forward Party supremo Vijai Sardesai said that the interest of Goans would have to be protected.
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No need to panic,
says Parrikar;
seeks time to
study the order
PANAJI: Chief Minister Manohar Parrikar refused to comment at length on the Supreme Court’s order cancelling all mining leases in Goa saying that he has not read the order, but has however said that there was “no need to panic” as there is until March 15 before mining stops.
“I understand that court has also said that auction is not necessarily the means. So there are different possibilities have opened,” Parrikar said adding that he would have to study the judgement first.
“There are many factors which I have casually checked. At this moment according to my information, nothing is applicable up to the 15th of March. I have more than a month available. I am not making any comment unless I go through it and find out what exactly it is,” Parrikar said.
“There is no panic so we can decide in 2-3 days. I have to also seek legal advice on the issue. As the Chief Minister I cannot comment casually,” Parrikar said.
