Virtually endorsing the tough line of action initiated by the Karnataka Lokayukta, Justice N. Santosh Hegde, against illegal mining in the iron-ore-rich state, the Supreme Court suspended mining operations by 19 licencees with clear instructions that they would not be allowed to lift the extracted material till further orders.

A special green bench comprising Chief Justice of India S.H. Kapadia and Justices Aftab Alam and K.S. Radhakrishnan suspended mining operations by the 19 mainly in Bellary region while taking into account the recommendations of the apex court-appointed Central Empowerment Committee (CEC) in its first and second reports, based on the assessment of the Lokayukta, and also in view of the state government’s affidavit giving its approval for drastic action.
The apex court asked the CEC to complete the formality of transferring the cases of 68 firms mentioned in its third report, including filing of appeals against the Karnataka high court orders in the cases of at least 30 of them, to the apex court by next Friday to enable the bench to issue identical suspension directions against them too.
The Chief Justice of India asked amicus curiae A.D.N. Rao and Karnataka advocate-general Ashok Harnahalli to ensure the transfer of the cases of the other mining companies mentioned in the fourth report of the CEC to the top court by Friday next to examine them also for passing suspension orders.
The Supreme Court took drastic action after Mr Harnahalli referred to the report of the Lokayukta stating that Justice Hegde had recommended a complete ban on illegal mining and the CEC and the state government had endorsed his recommendations.
The A-G, who referred to the affidavit filed by the state chief secretary, made his submission in response to a specific query by the CJI, who took a tough stance on the issue, saying, “We are on a very short question — whether the Karnataka government is considering the suspension of the mining leases till the new regulations are enforced. We want the answers today.”
In this context Justice Kapadia referred to four reports of the CEC placed before the bench dividing leaseholders into four categories with the first report containing the names of 15 licencees, the second four and third 68. “We want to see that the mining is done as per the regulations laid down by the state government,” the CJI said.
In its brief order, the top court clarified that “since the recommendations (of the CEC) are acceptable to the state government, we direct that no mining operation is carried (out) by the 19 firms and no transportation of the extracted material is allowed by them”.
The CJI added that the top court would not permit impleadment of any company which had purchased iron ore in view of the allegations of illegal mining.
Since the suspension orders with regard to the first and second reports were passed, the 68 figuring in the third report escaped it on Friday merely due to technical reasons — that in the cases of some of them the high court had passed final orders which could only be challenged in the apex court by way of filing of special leave petitions, not transfer petitions.
Lawyers of all such firms raised the legal technicality, saying their cases had got finality in the high court and therefore they could not be transferred to the apex court, and that the only remedy left for the CEC was to challenge the same through SLPs.
The 19 firms given suspension orders include Shri Ram Rao M. Poal, Adarsha Enterprises, J.M. Vrushabhendraiah (two leases), Sparkline Mining Corporation, Shiva Vilas Trust, Jai Santhoshi Matha Mining Enterprises, D. Ramesh, VSL Mining Co., Kathikeshwar Mining & Iron Ore, A Arogayya Das (two leases), G. Praveen Kumar Nikkam, B Rudragowda, Mithra Mineral Enterprises, SB Minerals, Muneer Enterprises, Trident Minerals and Veeyam Pvt. Ltd.