State Government Directed to Enforce Mining Obligations to Protect Public Interest and Revenue
In a landmark judgment passed by the Orissa High Court on January 29, 2026, a division bench comprising Chief Justice Harish Tandon and Justice Murahari Sri Raman directed the State Government of Odisha to enforce statutory obligations for optimal utilization of mineral resources. The judgment came in response to a Public Interest Litigation (PIL) filed by the Citizens' Action Forum, Bhubaneswar, highlighting the underutilization of mineral resources and the resultant loss to public interest and government revenue.
The court underscored the State's duty under Rule 12 (1) (ee) of the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016, which obligates the government to ensure the efficient use of mineral resources, particularly when lessees fail to meet their obligations. The provisions allow the State to take over the mining activities, with expenses borne by the lessees.
Acknowledging the vast iron ore reserves in Odisha, the court noted the State's failure to enforce mining obligations, leading to significant revenue loss and deprivation of public interest. The judgment emphasized the importance of sustainable and equitable distribution of resources, as mandated by Article 39(b) of the Constitution of India.
The court directed the State to invoke Rule 12 (1) (ee) to ensure optimal utilization of mines through the National Mineral Development Corporation, aiming to not only maximize resource use but also alleviate the financial burden on the government exchequer. This directive aligns with the National Mineral Policy, 2019, focusing on transparent and sustainable mineral exploitation.
The PIL brought attention to chronic underutilization by mining lease holders, with the court noting that despite the statutory duty under the MMDR Act, 1957, and the Concession Rules, 2016, the State had not activated necessary provisions to address these issues. The judgment calls for immediate remedial action to protect public resources and enhance government revenue.
With this directive, the court disposed of the writ petition, marking a significant step towards ensuring responsible and effective management of mineral resources in Odisha.
Bottom Line:
Mines and Minerals - Obligation of the State Government to ensure optimum and sustainable utilization of mineral resources under Rule 12 (1) (ee) of the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016.
Statutory provision(s):
- Mines and Minerals (Development and Regulation) Act, 1957
- Rule 12 (1) (ee) of the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016
- Constitution of India, Article 39(b)
- Mineral Conservation and Development Rules, 2017
Citizens' Action Forum, Bhubaneswar v. State of Odisha, (Orissa)(DB) : Law Finder Doc id # 2845448
