Rule 10 Prevails – Bombay HC Clarifies Five-Year Limit on Extension for Mining Auction Letter of Intent
On 10.9.2020, the respondent no.2 issued the letter of intent to the petitioner for mining lease for 646.55 hectare area for 50 years. The validity of LoI was for three years and extendable further by two years.
In pursuance of the approval of the Mining Plan on 19.3.2021 by the respondent no.4, the petitioner had given Letter of Intent on 13.9.2021 to the Consultant.
In the meanwhile, in view of the subsequent new development and restrictions on mining operations as also loss of 69 hectare of limestone block area, the petitioner made application for wildlife clearance. The petitioner also filed proposal for prior approval under Section 2 of the Forest Conservation Act, 1980.
Thereafter, the petitioner applied on 31.5.2023 for extension of validity period of LOI. The respondent no.2 granted extension only upto 9.9.2025.
The petitioner filed writ petition. While disposing of the said writ petition, the petitioner was permitted to approach the respondent no.2. However, the respondent no.2 declined to consider the request on the ground that the total consecutive period of LoI was five years.
Rule 10 the Mineral (Auction) Rules, 2015.
HELD that we have no hesitation to hold that the period of five years, including the extendable period, is provided to make compliances by the successful bidder as stipulated under sub-rules (3) to (5) of Rule 10 of the Rules of 2015. In other words, it can be said that the intention of the legislature is to provide three years period for the above referred compliances of sub-rules (3) to (5) to execute mining lease and in case where there is a delay in making such compliances and the reasons for delay were beyond the control of the preferred bidder, it is extendable by two years. The extendable period of two years shall also therefore, be treated as a period granted for making such compliances, which could not be made for certain reasons within three years and which were beyond the control of the Preferred Bidder.
We are of the opinion that the Preferred Bidder shall get complete period of two years of extension to make compliance as stipulated in sub-rules (3) to (5) of Rule 10 of the Rules of 2015. Whereas, contrary to this, as per State, such period of extension is to be counted from the date of lapses of the period of three years, even if extension was granted after expiry of three years.
