Date | March 22, 2017:

The Supreme Court on Tuesday rejected the request of mining lessees in Karnataka to lift the demand of 10 per cent levy on sales to finance a Special Purpose Vehicle (SPV) to restore the environmentally damaged districts in the state.

The court had in 2013 ordered the SPV's establishment, following the unearthing of a mining scam, involving influential politicians and iron ore barons. The state government has since set up the SPV, called the Karnataka Mining Environment Restoration Corporation.

The Federation of Indian Mining Industry and leading miner company Vedanta had argued that after the 2015 amendment to the Mines and Minerals (Development and Regulation) Act, the payment ordered by the SC would be redundant. The new law prescribes a levy to compensate for damage caused by mining. Lessees are required to pay to the District Mineral Foundation in each district an amount equivalent to such percentage of royalty not exceeding one-third of such royalty, as may be prescribed by the central government.

Both the central and Karnataka governments opposed the demand of the miners. According to them, the object of the SPV set up by the court and the foundations envisaged by the law operated in different fields. The state government contended that if the request was granted, its plan for revival of the plundered regions, especially in the three districts of Ballari, Chitradurga and Tumakuru would be upset. It would also be unfair to the new lessees.

The verdict, delivered by judge Ranjan Gogoi states there is no overlapping of the two schemes contemplated by the court and the law. The court-ordered special fund was meant for re-creation of what has been lost due to such illegal activities. Even those remotely connected with the destruction of nature must continue to pay their share in the process of restitution. The new lessees are also contributing to the fund and this must continue.

The court did not pass any final order on the request of the state for approval of its scheme for the worst affected districts, called the Comprehensive Environment Plan for the Mining Impact Zone, to be implemented through the SPV.

The court noted that at present, this is really in the nature of a “vision document”, with all concrete measures to be worked out later.

The court has been passing orders since 2009 in a public interest suit moved by a Samaj Parivartana Samudaya. Several more issues are pending in the case.

(Source: http://www.business-standard.com/)