In a major setback to the state government, the Orissa High Court today slapped an interim stay on the operation of the government's recent decision to auction all mines in the state, barring coal.
Adjourning the hearing on a batch of writ petitions challenging the government's decision to February 4, a division bench comprising justices Indrajit Mahanti and B K Patel issued notice asking the Odisha government to file counter by the next date of hearing.
The state Cabinet on January 5 had taken a decision to auction all mineral leases, barring coal, to facilitate all leases awaiting second and subsequent renewal after they were closed in May last year following a Supreme Court order. A resolution to this effect was passed by the government on January 9.
Challenging the state government's decision, at least five mining lease holders, including Mid-east Integrated Steel Ltd., Aryan Mining and Trading Corporation Ltd., Kalinga Mining Corporation Ltd. And Orissa Manganese approached the High Court seeking setting aside of the government's recent decision.
The main ground on which the mining companies are challenging the January 5 decision is that the state government does not have the legislative nor executive power to auction the mines following the enactment of Mines and Minerals (Development and Regulation Amendment) Act, 2010.
The petitions say that MMDR Act of 1957 and Mineral Concession Rule (MCR) of 1960 are the two vital laws of the land under which mining operations are regulated in the country.
