In Brief
Mining leases in Sonbhadra district were suspended in 2018 following NGT orders for environmental protection of Kaimur Wildlife Sanctuary. The appellants sought either extension of their leases for the obstructed period or monetary compensation. The Supreme Court held that mining lease extensions must follow statutory procedures (Chapters II and IV of the Mining Rules) and cannot be granted merely because operations were judicially interdicted. Rule 68 provides only a narrow relaxation power to aid mineral development, not to bypass prescribed procedures. The Court directed refund of security deposits and advance royalties paid for the obstructed period, with 9% per annum interest from the obstruction date, but rejected lease extension as violating the 2017 Mining Policy and statutory provisions.
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