Document Fragment View

Matching Fragments

2. Some of the more important amendments to be made are as follows:

xx xx xx

(iii) A new provision is proposed to be inserted in the Act prohibiting transportation or storage or anything causing transportation or storage of any mineral except under the due provisions of the Act, with a view to preventing illegal mining. Further, the Act is proposed to be amended to cover the breach of the provisions of the proposed new provision of the Act to be punishable. It is also proposed to insert a new provision to provide for anything seized under the Act as liable for confiscation under court orders. A new section is proposed to be inserted to empower the State Governments to make rules for preventing illegal mining, transportation and storage of minerals and for purposes connected therewith.

13) We may also, at this stage, refer to the reasoning given by the High Courts of Andhra Pradesh and Madras in support of their view, which is in conflict with the view taken by the Gujarat High Court. The judgment of the Andhra Pradesh High Court proceeds to decide the issue in the following manner:

"27. Sector 23-C of the Act authorises the State Government to make rules not only for the purpose of preventing illegal mining but also for transportation and storage of minor minerals, which power would imply that even after the minor mineral has been mined, the power is conferred on the State Government to frame Rules for such mined minor mineral as regards its storage and/or its transportation and also to frame rules to see that no illegal mining activity is carried on. Sub-clauses (a) to (g) of Clause (2) of Section 23-C are illustrative of the matters, which are covered under the rule making power. Sub- section (2) says that in particular and without prejudice to the generality of the powers conferred under Section 23-C, rules may provide for all or any of the said matters. Sub- clause (c) itself say that regulations can be framed of mineral being transported from the area granted under the licence or a mining lease. Rules can be framed on any of the matters including transportation of the excavated mineral. Section 23-C is the source of power under which Rule 9-W can be said to have been framed by the State Government. We have to keep in mind that the Parliament passed the Amendment Act, 1999 (Act No. 38 of 1999) thereby inserting Section 23-C in the Principal Act after the decision of the Supreme Court in Kavery Chetty’s case (supra). By the said provision, power was specifically conferred on the State Government to make rules for preventing illegal mining, transportation and storage of minerals. The State Government has framed the Rules thereafter. Thus, there is ample power with the State Government to frame Rules regarding transportation of the excavated minor mineral, which would include restriction on the transport of the said minor mineral beyond the limits of the State borders. In this view of the matter, the challenge to Rule 9-W is without any substance.”

29) In this hue, the learned ASG submitted that Section 23-C was inserted with specific object to curb ‘illegal mining’. Therefore, the words ‘transportation’ and ‘storage’ occurring therein would take their colour from the expression ‘illegal mining’ on the principle of noscitur a sociis. That was clear from the Statement of Objects and Reasons as well. On the aforesaid basis, Ms. Divan submitted that the High Court rightly concluded that there was lack of power with the State Government to make such a provision which could neither be traced to Sections 15, 15(1A) or 23 of the MMDR Act.

A new section is proposed to be inserted to empower the State Governments to make rules for preventing illegal mining, transportation and storage of minerals and for purposes connected therewith.

(emphasis supplied)”

42) It is in this context the words ‘transportation’ and ‘storage’ in Section 23-C are to be interpreted. Here the two words are used in the context of ‘illegal mining’. It is clear that it is the transportation and storage of illegal mining and not the mining of minor minerals like sand which is legal and backed by duly granted license, which can be regulated under this provision. Therefore, no power flows from this provision to make rule for regulating transportation of the legally excavated minerals.