Minor Mineral – Royalty and Penalty – Unauthorized excavation of earth for IKEA Store –
In lease land of MIDC in Turbhe Taluka and District Thane was developed by the petitioner no.1 IKEA India Pvt Ltd. On 24.10.2017 and 3.1.2018, the petitioner no.1 obtained permissions for removal of excavated earth of total 32,100 from the land. However, as per the inspection report dated 18.1.2019 of the Circle Officer, the assessment was of 37,632 brass.
On 29.1.2019, show cause notice under Section 48(7) of MLR Code, 1966, was issued for entire 37632 brass unauthorized excavated earth.
In the reply, it was stated that out of total excavated earth of 59,158 brass, the earth of 31,945 brass was removed from the subject land and balance of 27,213 was used or proposed to be used for back filling and levelling the subject land, internal roads and IKEA Store.
It was further stated that permission for 32,100 brass was obtained and royalty was paid and mentioned that no royalty is payable on the excavated earth used for the same land.
Thereafter, two further permissions to remove 7,400 and 1,500 brass of excavated earth were taken on 24.7.2019 and 13.10.2020 . Thus, royalty of Rs.1,90,42,900 for total four permissions of 41,000 brass was paid.
Two and half years thereafter, a show cause notice dated 27.9.2021 was issued. On 6.6.2022, reply was given.
On 30.12.2022, an order for payment of royalty of Rs.22,12,800/- for 5,532 brass and penalty of Rs.5,53,20,000/- was passed.
On 17.4.2023 and 26.5.2023 recovery notices were issued and on 21.7.2023, attachment order was passed.
HELD, following the earlier decisions in the facts of the case, that excavation of earth during development would not automatically attract royalty. No royalty would be attracted for the earth redeployed in the development of the same plot. There is no question of there being any scope for alleging the need for a permit to extract earth. Consequently, there is no question of imposing penalty for non-payment of royalty. However, any quantum of excavated earth that is more than the redeployed earth and that is required to be removed from the plot would attract royalty. The scale of extraction is based on measurement of cavity in the land at the time of inspection. The impugned order simply deducted the quantum of earth removed from the land to record a finding that 5,532 brass was illegally extracted without permission. The respondents had abandoned the due process of vital element of quantum of redeployment in order to assess what the charge of royalty should be.
Judgment dated 10.4.2024 in W.P.No.494 of 2024 of IKEA India Pvt Ltd and another Vs. State of Maharashtra and others
