Judgement of the Supreme Court of India regarding reservation of lands for government companies or corporations owned and controlled by the State Government under MMDR Act 1957, 08/05/2018

  • 08/05/2018

Judgement of the Supreme Court of India in the matter of M/s. Geomysore Services (I) Pvt. Ltd. & Others Vs M/s. Hutti Goldmines Co. Ltd. & Others dated 08/05/2018 regarding reservation of lands for government companies or corporations owned and controlled by the State Government under section 17A (2) of the Mines and Minerals (Development and Regulations) Act, 1957. There are gold mines in the State of Karnataka and parties are litigating in respect of their rights to exploit those mines.

The main highlights of the Supreme Court Judgement of May 08, 2018 are the following: 

(i) The State Government being the owner of the land and minerals, has a right to make a proposal to the Central Government to reserve lands not held under a prospecting licence or mining lease for exploitation by the State Government companies or undertakings but approval of the Central Government is necessary;

(ii) the Central Government can not only take into consideration factors of national security or public interest but also economic factors, the policy of the Government and all such other factors which are relevant to decide the issue whether the land should be reserved for exploitation only by State Government Undertakings;

(iii) Supreme Court sets aside the judgment of the High Court passed in W.P. No.25899 of 2011 on 03.04.2012 and the decision of the Central Government dated 31.05.2011 is upheld and the State of Karnataka is directed to consider the case of Geomysore and Deccan for grant of Prospecting Licence (PL) in accordance with the provisions of the Act as they now stand amended in the year 2015.

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