In Brief
This landmark judgment addresses illegal mining of iron ore and manganese in Odisha's Keonjhar, Sundargarh, and Mayurbhanj districts. The Supreme Court held that mining without environmental clearance (EC), forest clearance (FC), or in excess of permissible limits within leased areas constitutes illegal mining attracting full 100% compensation under MMDR Act Section 21(5). Environmental clearance is mandatory for lease renewal post-1994, with 1993-94 as the base year for calculating expansion. Mining post-7 January 1998 without forest clearance also requires 100% compensation. The Court rejected the Central Empowered Committee's recommendation of 30% recovery, mandating complete recovery. Approximately Rs. 17,576 crores in minerals were illegally extracted. The judgment emphasizes environmental protection, intergenerational equity, and the need for policy revision. Only statutory payments made toward forest conservation remain non-refundable.
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