T.N. GODAVARAMAN THIRUMULPAD versus UNION OF INDIA AND ORS.

T.N. GODAVARAMAN THIRUMULPAD versus UNION OF INDIA AND ORS.

Lease cannot be directed to be assigned by State Government to SPV as it would amount to substitution of lease earlier executed by State Government in favour of OMCL. At pre-operational stage, price mechanism suggested by CEC need not be applied. Rehabilitation Package as suggested is accepted and clearance granted for diversion of forest land for mining, subject to compliance with specified conditions.

Parties
Petitioner: T.N. Godavaram Thirumulpad; Respondents: Union of India and Ors.; Interlocutory Applicant: Sterlite Industries (India) Ltd. [Siil]; Respondent: State of Orissa; Respondent: Orissa Mining Corporation Ltd. [OMCL]
Jurisdiction
India
Judgment Date
08 August 2008
Procedural Posture
Interlocutory Application in Writ Petition (civil) No. 202 of 1995 / Order Disposing IA No. 2134 of 2007
Outcome
Interlocutory Application disposed of; clearance granted to forest diversion proposal for undertaking bauxite mining on Niyamgiri Hills in Lanjigarh, subject to compliance with Rehabilitation Package and further approval by MoEF.
Legal Topics
Sustainable Development, Balancing Development and Environmental Protection, Mining Lease, Forest Diversion, Rehabilitation Package, Scheduled Area Development
Environmental Law Sustainable Development Balancing Development and Environmental Protection Mining Lease Forest Diversion Rehabilitation Package Scheduled Area Development

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Parties

T.N. Godavaram Thirumulpad

Petitioner

Union of India and Ors.

Respondents

Sterlite Industries (India) Ltd. [Siil]

Interlocutory Applicant

State of Orissa

Respondent

Orissa Mining Corporation Ltd. [OMCL]

Respondent

Procedural Posture

Interlocutory Application in Writ Petition (civil) No. 202 of 1995 / Order Disposing IA No. 2134 of 2007

Legal Issues

  1. 1 Whether the mining lease of Niyamgiri Bauxite Mine should be assigned to the SPV from OMCL
  2. 2 Whether the price mechanism suggested by CEC should be applied at the pre-operational stage
  3. 3 Conditions for forest land diversion and implementation of Rehabilitation Package

Ratio Decidendi

Lease cannot be directed to be assigned by State Government to SPV as it would amount to substitution of lease earlier executed by State Government in favour of OMCL. At pre-operational stage, price mechanism suggested by CEC need not be applied. Rehabilitation Package as suggested is accepted and clearance granted for diversion of forest land for mining, subject to compliance with specified conditions.

Court Disposition

Interlocutory Application disposed of; clearance granted to forest diversion proposal for undertaking bauxite mining on Niyamgiri Hills in Lanjigarh, subject to compliance with Rehabilitation Package and further approval by MoEF.

Orders

  • Accounts of SPV to be audited by Auditor General after preparation by statutory auditors of OMCL.
  • Siil to deposit every year commencing from 1.4.07, 5% of its annual profits before tax and interest from Lanjigarh Project or Rs.10 crores whichever is higher with SPV for Scheduled Area Development.