Goa mining firms’ pleas for extension of leases dismissed by SC

Vedanta and others claimed before the Supreme Court that under the amended Mines and Minerals Development Act (2015), all leases that were operational before the amendment “shall be deemed to have been granted for a period of fifty years” in Goa’s case

The Supreme Court on Tuesday dismissed a bunch of petitions filed by Goa’s mining companies seeking retrospective extension of their leases until 2037.

Goa’s miners argued that since their mines were “operational” when the amendment came into effect in 2015, they were eligible for extension of leases under the amendments. (Hindustan Times Photo)

The petitions were filed by Vedanta Ltd and other mining companies after the Goa government refused to entertain them saying it was bound by a Supreme Court order specifically prohibiting such extensions.

The petitions were dismissed by a bench of justices DY Chandrachud, Vikram Nath and Hima Kohli on Tuesday. The reasons for the dismissal will become clear when a copy of the order is made available.

The largest mining company to have operated in Goa, Vedanta Ltd had challenged Goa government’s decision to decline its request to amend their mining lease to extend its period from 1987 to 2037-- a period of 50 years citing Section 8(A)(3) of the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act).

Vedanta and others claimed before the Supreme Court that under the amended Mines and Minerals Development Act (2015), all leases that were operational before the amendment “shall be deemed to have been granted for a period of fifty years”. This, they argued, in Goa’s case meant 50 years from 1987 -- the year Goa’s mining leases were converted from Portuguese granted concessions under the Mines and Minerals Development Act.

Goa’s miners argued that since their mines were “operational” when the amendment came into effect in 2015, they were eligible for the benefit under the amendment. The Supreme Court order pronouncing Goa’s mining lease renewals to be illegal was passed in 2018.

The Goa government agreed with their standpoint, but expressed inability to extend the lease deed due to the Supreme Court verdict dated February 7, 2018, which cancelled 88 mining lease renewals and directed that leases and environmental clearances are granted afresh.

The Supreme Court had ruled that Goa’s mining leases, initially granted as concessions by the Portuguese, expired in November 2007 and the subsequent renewals by the state government in 2014-15 were illegal.

The Goa government had backed Vedanta in their plea before the Supreme Court saying it was prima facie in agreement with the firm. Earlier this year, the Supreme Court also dismissed a plea by the Goa government seeking a review of SC’s 2018 order, which cancelled the 88 mining leases.

Goa chief minister Pramod Sawant on Tuesday said he hadn’t seen the order and hence couldn’t comment on the decision.

“I will read the order. But the government has been prepared. We have started our corporation. We will fast track the process. If necessary we will auction the mining leases to restart the mining process,” Sawant said when asked to comment on the development.

“After the dismissal of the review petitions, it was apparent that the appeals and petitions filed by Vedanta and Parulekar would also go out of the window. With this development, the private mining industry and its lobbies which held sway over the sector for more than 50 years have come to an inglorious end,” Claude Alvares, the director of Goa Foundation, an environmental NGO whose petitions resulted in the closure of mining in Goa, and who was a respondent in this case, said.

HT reached out to Vedanta but received no response at the time of filing this report.