Minor mineral – Earth excavated and re-deployed in the same land is not subject to royalty and would not attract wrath of Section 48(7) of the Maharashtra Land Revenue Code, 1966

Out of total 80,858 quantity of soil from the land of the petitioner at Wagholi, permission and royalty was paid for 40,000 brass of soil.   However, remaining 40,858 brass of soil was used for development and levelling of the same land of the petitioner.   According to the petitioner, the soil excavated from its own land and used in its own land for levelling / development is not subject to permission and royalty.

The show cause notice dated 22.11.2022 was, however, served on the petitioner for unauthorised excavation of minor minerals of 80,858 brass and for penalty.

By the order dated 29.6.2023, the Tahsildar, Haveli, directed the Petitioner Developer to pay Rs.13,45,86,252/- including royalty and monetary penalty for alleged excavating minor minerals (ordinary earth) without authorisation.

The High Court has set out a definitive interpretation of the law on the subject of earth being redeployed for the work for the same land. It was considered that the purpose for which an extraction is made would determine whether the excavated earth is at all a “minor mineral”.  Use of the extracted earth would determine whether it can ever be regarded as a minor mineral to attract Section 48(7) of MLRC.   In order to invoke Section 48(7), the State would need to make a “more precise determination of the end use.”   Thus, as per the second proviso to Rule 46(i) would show that the earth extracted in the course of development of a plot and utilised on the very same land for levelling or for any other work in the course of such development, no royalty is required to be paid. However, show cause notices are issued and penalty orders are passed inspite of clear legislation and explicit declaration of law.

Mines and Minerals (Development and Regulation) Act, 1957 (Mininig Act) and the Maharashtra Minor Minerals Extraction (Development and Regulation) Rules, 2013 (Extraction Rules)

Judgment dated 8.3.2024 in W.P.No.10449 of 2023 of AIGP Developers (Pune) Pvt Ltd  Vs. The State of Maharashtra and others.