The Karnataka High Court on Friday upheld the ban imposed by the state government on export of iron ore and dismissed the writ petitions fled by the 40 affected mining companies. Now, the ban will continue until further government orders.
A division bench of the high court headed by Chief Justice J S Khehar and Justice S Abdul Nazeer also told the state government to expedite steps to prevent illegal mining, transport and storage of iron ore in the state within six months of the date of the original ban orders (dated July 26 and July 28).
The state government had banned export of iron ore from 10 ports in the state and stopped issuing dispatch permits for transporting iron ore for exports.
Leading miners like Sesa Goa, Mineral Enterprises Limited, Lakshminarayana Mining Co, Deccan Mining Syndicate, V S Lad & Sons, Kariganur Mineral Mining Industry, S B Minerals, Kumaraswamy Mineral Exports, Hothur Traders were among the 40 mining companies that had appealed against the ban.
“Despite our having considered a large number of submissions (13 in all) advanced at the hands of the counsel for the petitioners, we have found no infirmity in the impugned orders, on any of the grounds raised before us. We, therefore, uphold the orders dated July 26 and July 28 and dismiss all the writ petitions,” said Justice Khehar in his order.
The high court took into consideration the state government’s argument that the ban was imposed to check illegal mining and iron ore exports.
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“If the aforesaid purpose is achieved, within the time expressed by the advocate general, during the course of hearing, we are of the view that the exercise carried out by the state government may well be reasonable and legitimate,” the chief justice said.
The main contention of the petitioners was that the state had no executive powers to ban iron ore exports. Iron ore exports could be banned by an Act of Parliament alone and not by any state legislature or executive order, they said.
The government said the ban was largely to prevent illegal mining and transport of ore. Under Section 23 C of the MMDR Act, state governments are empowered to make rules to prevent illegal mining, storage and transportation.
Basant Poddar, managing director, Mineral Enterprises Limited, one of the petitioners, said, “We are disappointed with what is pronounced on Friday. We have other options like approaching the Supreme Court. We will file a petition in the Supreme Court next Monday to seek a stay on the HC order. The action of the state government is to curb illegal mining, but in the process legal mining companies are struck in the crossfire.”
Since the ban on July 26, iron ore mining companies in Karnataka have lost export business of 10-12 million tonnes valued over Rs 5,000 crore.
PTI adds: The government on Friday constituted a one-man commission of inquiry under retired Supreme Court judge MB Shah to look into illegal mining in the country, a burning issue which has also rocked Parliament. “The government has appointed MB Shah, retired Judge of the Supreme Court, as a one-man Commission of Inquiry with headquarters in Mumbai, to submit a report on illegal mining of iron and manganese ore,” Mines Secretary S Vijay Kumar said. The commission would submit its report within 18 months from the date of its first sitting, he said.