The Madras High Court on Tuesday upheld a rule in Tamil Nadu Minor Mineral Concession Rules making it mandatory for dealers in river sand to obtain a licence for setting up stockyard. The rule also makes it compulsory for the stockists to obtain the sale slip from the local Deputy Tahsildar.
Dismissing a batch of over 500 writ petitions challenging the newly introduced rule, filed at the principal seat here and the Madurai Bench, the First Bench of Chief Justice M.Y. Eqbal and Justice T.S. Sivagnanam said that Rule 38-C was fully in conformity with the Mines and Minerals (Regulation and Development) Act and rules and could not be held as an excessive exercise of power by the State government.
The rule was introduced through a G.O. of the Industries Department of February 11, 2011. The petitioners sought quashing of the G.O.
Dealers’ contention
The dealers submitted it was practically impossible to identify the quantity of sand relating to a particular transport permit from a huge stock at the stockyard, that too after processing. Since 25 per cent of the purchased sand was eliminated during processing, the actual quantity available in the stockyard would not tally with the sale bills issued by the PWD, which quarried and sold sand at the quarry site.
Advocate-General A. Navaneethakrishnansaid that the rule was introduced to curtail the illicit transportation of sand and wipe out escalation in price by private dealers. If the present state of affairs was allowed to continue, it would defeat the government’s main objective to sell sand to the public at an affordable price.
The provision had been introduced to streamline the procedure involved in stockyard sale of sand. The stockyard owners were required to obtain licence for running the stockyard. They should establish that the quantity stocked had already suffered seigniorage fee. The licence holders need not pay any further fee for transporting sand from the stockyard to any place.
The judges said it was the obligation of all concerned, including Central and State governments, to conserve, and not waste, natural resources.
The Mines and Minerals (Regulation and Development) Act empowered the States to make rules to prevent illegal mining, transportation and storage of minerals. In exercise of that power, Rule 38-C had been inserted. The Bench rejected the petitioner counsel’s contention that Rule 38-C related only to illegal mining, transportation and storage of sand and had no universal application.
The Principal Secretary, Industries, in his affidavit stated that under the amended rules, illegal mining of sand and smuggling to neighbouring States had been brought under control to a great extent. The Bench said the statutory duty imposed upon sand dealers under the rule for preventing illegal mining, storage and transportation of sand could not be held as illegal.
