THE GOA FOUNDATION versus M/S SESA STERLITE LTD. & ORS.

THE GOA FOUNDATION versus M/S SESA STERLITE LTD. & ORS.

The State of Goa was obligated under the Supreme Court’s judgment in Goa Foundation to grant fresh mining leases in accordance with law and not to provide mere second renewals of existing mining leases. The State’s decision to grant second renewals was erroneous, hasty, and failed to take into account key relevant materials, including widespread illegalities and environmental violations. There is no constitutional obligation to allocate natural resources by auction, except in the case of spectrum, but any departure from auction is subject to judicial review under Article 14. Environmental clearances must be freshly obtained for fresh leases, not simply revived by lifting previous abeyance...

Parties
Petitioner: The Goa Foundation; Respondent: M/s Sesa Sterlite Ltd. & Ors.
Jurisdiction
India
Judgment Date
07 February 2018
Procedural Posture
SLP (civil) No. 32138 of 2015 / Final Decision on Merits
Outcome
Second renewal of mining leases by State of Goa quashed; High Court decision set aside; directions issued for grant of fresh mining leases and environmental clearances; mining operations to stop from 16th March 2018 until new leases/clearances are in place; petitions disposed of.
Legal Topics
Mining Lease Renewal, Natural Resource Allocation, Judicial Review of Policy, Environmental Clearance, Auction of Natural Resources
Environmental Law Administrative Law Constitutional Law Mining Law Mining Lease Renewal Natural Resource Allocation Judicial Review of Policy Environmental Clearance +1 more

Case Brief

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Parties

The Goa Foundation

Petitioner

M/s Sesa Sterlite Ltd. & Ors.

Respondent

Procedural Posture

SLP (civil) No. 32138 of 2015 / Final Decision on Merits

Legal Issues

  1. 1 Whether the grant of second renewal of mining leases by the State of Goa was valid in light of the Supreme Court’s earlier decision in Goa Foundation; Whether fresh mining leases needed to be granted instead of renewals; Whether allocation of natural resources via auction is constitutionally mandated; Scope of judicial review over policy decision in allocation of natural resources

Ratio Decidendi

The State of Goa was obligated under the Supreme Court’s judgment in Goa Foundation to grant fresh mining leases in accordance with law and not to provide mere second renewals of existing mining leases. The State’s decision to grant second renewals was erroneous, hasty, and failed to take into account key relevant materials, including widespread illegalities and environmental violations. There is no constitutional obligation to allocate natural resources by auction, except in the case of spectrum, but any departure from auction is subject to judicial review under Article 14. Environmental clearances must be freshly obtained for fresh leases, not simply revived by lifting previous abeyance...

Court Disposition

Second renewal of mining leases by State of Goa quashed; High Court decision set aside; directions issued for grant of fresh mining leases and environmental clearances; mining operations to stop from 16th March 2018 until new leases/clearances are in place; petitions disposed of.

Orders

  • Second renewal of mining leases by State of Goa is quashed.
  • State of Goa to grant fresh mining leases in accordance with law and take steps as per the Mines and Minerals (Development and Regulation) Act, 1957.