Indian Kanoon - Search engine for Indian Law

41) Insofar as Section 23-C of the MMRD Act is concerned, it was inserted by the Amendment Act of 1999 with the objective to prevent illegal mining. That is clearly spelled out in the Statement of Objects and Reasons............:

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.

83. A plain reading of Section 15 (1), 15 (1) (g) and 15 (1) (o) shows that the State Government is bestowed with the power to make rules, and such rules would provide power, to fix, collect rent, fees and other charges. Further such rules may be made for any other matter, which is to be or may be prescribed.

84. When the parliament in its wisdom, amended MMRD Act, 1957 on 18.12.1999 and proceeded to add Section 4 (1A), 23 (A) & 23 (C). The very object of this amendment was to prohibit transportation and storage of minerals with the sole intention of preventing illegal mining. Section 4 (1A) clearly lays down that no person shall transport or store any mineral contrary to the provisions of the Act and the Rules framed therein. Further, Section 23 (C) (1) mandatorily calls upon the State to frame rules to curb illegal mining, transportation and storage and also lays down as to what all the State are supposed to do for preventing illegal mining, their transport and storage. The State is obliged to take several measures such as setting up check posts for checking minerals under transit and also setting up the other allied infrastructure using the latest technologies to curb transportation of illegal minerals.

122. The phrase used in Section 23-C (1) of the MMRD Act is 'illegal mining', transportation and storage. All these three words i.e. illegal mining, transportation and storage have to be read separately and not in conjunction. The Section clearly gives power to the State Government to independently frame rules for all these issues though all these three issues are an integral part of the mining industry, but the plain reading of the Section is that the rules can be framed independently for illegal mining of minerals, separate rules and regulations for transportation of minerals, and altogether different rules and regulations for storage of minerals, this will include both legally and illegally excavated minerals. This further gets corroborated from the amendment in Section 21 of MMRD Act brought in 2021 where an explanation was added in the penalty section (Section 21), which clarified that penalty would be imposed on raising or transportation of any minerals, which are in contravention of the rules made under Section 23 (2), this amendment clarifies that illegal mining, transportation and storage cannot be read in conjunctive.

126. Section 41-A of the MMDR Act empowers the State to make rules for transportation and storage of minerals. There is no distinction between legally mined and illegally mined minerals whereas in Section 23 (C-1) the phrase used is 'illegal mining, transportation and storage'. A plain reading of both the sections make it clear the phrase 'illegal mining, transportation and storage' have to be read separately and not in conjunction. The Section clearly gives power to the State Government to independently frame rules for all these subjects though all these three subjects are an integral part of the mining industry, but the plain reading of the Section is that the rules can be framed independently for illegal mining of minerals, separate rules and regulations for transportation of minerals, and altogether different rules and regulations for storage of minerals, this will include both legally and illegally excavated minerals. This further gets corroborated from the amendment in Section 21 of MMRD Act brought in 2021 where an explanation was added in the penalty section (Section 21), which clarified that penalty would be imposed on raising or transportation of any minerals, which are in contravention of the rules made under Section 23 (2), it does not state whether it is legally or illegally excavated minerals.