Rajasthan to reinitiate mine auctions following Supreme Court verdict

Rajasthan to reinitiate mine auctions following Supreme Court verdict

50,000 small mines will be auctioned

Mining Rajasthan

The CM Ashok Gehlot government of Rajasthan has received significant relief from the Supreme Court. The Rajasthan High Court had previously stayed the decision to auction the mines, but this order has now been quashed by the Supreme Court. As a result of the Supreme Court's decision, the state government will be able to proceed with the auction of more than 50,000 stalled mines in the state. Justices AS Bopanna and MM Sundresh of the Supreme Court issued these orders. Senior reporter Manish Singhvi represented the state government and advocated the matter in the Supreme Court.

In its previous tenure, the Gehlot government canceled the old allocation policy for mining by introducing a new auction rule, which resulted in the cancellation of applications for the allotment of more than 50,000 small mines across the state. In response to this decision, the applicants challenged the government's action in the Rajasthan High Court. After careful consideration and hearings, the High Court issued its verdict in March 2013, overturning the Gehlot government's decision and ordering the allocation of mines to be conducted under the old policy.

After a decade, the state government decided to challenge the High Court's order in the Supreme Court. Following the submission of the case to the Supreme Court and the presentation of arguments from both sides, the court ruled in favor of the Gehlot government. The Supreme Court overturned the High Court's March 2013 decision and restored the Gehlot government's auction ruling for the mines, thereby upholding the validity of the new allocation policy.

More than 50 thousand mines will be auctioned

Following the Supreme Court's ruling, the government will now have the opportunity to auction more than 50 thousand small mines across the state. This decision is expected to generate revenue amounting to crores of rupees for the government. Prior to 2013, the state government used to allocate mines on a first-come-first-serve basis, leading to the accumulation of over 50 thousand applications from various regions of the state. However, with the new auction policy reinstated, the process of allotting these mines will now be conducted through fair and transparent auctioning.

The mining sector in Rajasthan contributes significantly to the state's economy and provides employment to a large number of people. The state government plays a crucial role in regulating and managing the mining activities to ensure sustainable development and minimize adverse impacts on the environment and local communities. Legal issues and controversies often arise in the process, leading to court interventions and decisions, as mentioned in the news summary above.


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