HC reviews Maharashtra policy allowing NHAI free mineral extraction

The Bombay High Court is reviewing a 2017 policy allowing NHAI to extract minor minerals royalty-free, questioning its legality against 2013 regulations.

MUMBAI: In a case with far-reaching implications for the regulation of minerals, the Bombay high court on Tuesday heard a Public Interest Litigation (PIL) examining the Maharashtra government’s 2017 policy that permits the National Highways Authority of India (NHAI) to extract minor minerals, specifically murum, from water bodies near highway construction sites without paying royalty.

HC reviews Maharashtra policy allowing NHAI free mineral extraction

The court, noting a potential conflict between this policy and the Maharashtra Minor Minerals Extraction Rules of 2013, has questioned the legality of such an exemption and called for clarity on compliance.

The case was brought before the court by Balkrushna Bateshwar Kharade, a Solapur resident, who argued that a 2017 government resolution contradicted the statutory rules requiring royalty payments for the extraction of all minor minerals. Kharade contended that by allowing NHAI to bypass these requirements, the government was undermining the legal framework established by the 2013 rules under the Mines and Minerals (Development and Regulation) Act, 1957.

According to the 2013 rules, any lessee extracting minor minerals is required to pay royalty fees at rates set by the government. However, Kharade argued, the 2017 resolution granted NHAI or its contractors the freedom to extract murum from local ponds, lakes, and tanks along construction sites without such payments. He claimed this policy could lead to unregulated extraction practices that might harm public resources.

Representing the Maharashtra government, additional government pleader Neha Bhide defended the exemption, suggesting it facilitated critical infrastructure development by reducing project costs. Bhide emphasised that NHAI’s work on national highways is essential for economic progress and argued that the government’s decision was an administrative measure to streamline the process.

Earlier, on October 23, the court had directed the Directorate of Geology and Mining to investigate the issue further. Divya Satendra Verma, the district mining officer of Solapur, appeared in court and confirmed that the district collector had granted permission to NHAI for royalty-free murum extraction in 2019. Verma clarified that such permissions adhered to government regulations, including obtaining no-objection certificates from related departments such as Public Works and Water Resources.

The court, presided over by chief justice Devendra Kumar Upadhyaya and justice Amit Borkar, however, raised concerns about whether this policy adhered to the statutory regulations under the 2013 rules, which do not allow exemptions without a clear legislative basis. The bench has also appointed senior advocate Saket Mone as amicus curiae to provide impartial guidance on the legal intricacies of this case.

The court has scheduled the next hearing for December 18, instructing the parties involved to address the core question: whether the 2017 policy violates the 2013 rules and whether NHAI should retroactively pay royalties for materials extracted under this policy.