The Supreme Court banned mining operations across nearly 11,000 hectares in Karnataka’s Bellary district in view of the degradation, beyond repair, caused to the environment. The order comes a day after the Karnataka Lokayukta’s report on illegal mining in the state led the BJP to ask chief minister B.S. Yeddyurappa to step down.

A special forest bench comprising Chief Justice of India S.H. Kapadia and Justices Aftab Alam and Swatanter Kumar, while indicating a total ban on export of iron ore, which had escalated the “greed” of mining companies, sought a report form the Centre within a week on the actual requirement of the domestic steel industry being met from Bellary. The apex court directed the secretary, ministry of environment and forests, to prepare the report on the basis of data supplied by the ministries of steel, mines and commerce and asked the official to convene a meeting of the secretaries of the three other ministries.
“In continuation of our earlier order, we are of the view that mining operations and transport of iron ore from the area measuring 10,868 hectares approximately in Bellary district... we immediately suspend the mining till further order (sic),” the CJI said in the order.
After Attorney-General G.E. Vahanvati made a commitment to submit the report within a week considering the urgency of the matter, the top court specifically asked the Centre to indicate the actual quantity of iron ore exported from Bellary. The apex court acted on the fresh report of the central empowerment committee (CEC) on forests, which was directed to submit a further report within three weeks on the “impact on environment” due to illegal mining in the districts of Chitradurg and Tumkur, too.
The CJI told Karnataka’s counsel, Anita Shenoy, “We want to know from the state what action plan it has on the rehabilitation of people affected due to illegal mining and constitution of a fund contributed by mining companies, and how it is being spent,” making it clear that companies would be made to pay for rehabilitation and restoration of the environment.
As several senior counsel, including Fali Nariman, A.M. Singhvi, Dushyant Dave and C. Sundaram raised the issue of sparing those companies against whom the CEC had not found any illegality, the bench said, “It was the collective responsibility of all mining companies to protect the environment.” “Bellary no longer is capable of excavation. It can’t take on any more degradation of environment. For the time being we will suspend all mining operations and will later assess individual cases,” the court said, rejecting their plea.
“Rehabilitation charges will be claimed form the mining companies. Till then we will ban, irrespective of whosoever is mining (including PSUs National Mineral Development Corporation and Mysore Minerals Corporation). Everyone has to contribute to rehabilitation and restoration,” the CJI said.
The top court also told the attorney-general that the Centre should lay down guidelines for payment of royalty by mining companies on export of any mineral on the basis of the “international pricing mechanism”, which would not only generate additional revenue for the government but also “discourage” rampant exploitation of the nation’s resources.
On the “escalation of the greed” of mining companies after massive exports to China, the CJI said, “It should be a matter of grave concern for all why Indian resources should contribute to strengthen the economies of the other countries.”
The court, after viewing “satellite images” showing massive devastation in the area, said, “We are alarmed by these photographs. Environment rights under Article 21 of the Constitution will override all contractual rights of the mining companies.” The CEC’s report said the dense forest area in Bellary had been reduced to eight per cent.