In Brief
This batch of petitions challenged the establishment of District Mineral Foundations (DMFs) and contributions required from mining lease holders under the Mines and Minerals (Development and Regulation) Act, 1957 as amended in 2015. The Supreme Court held that while DMF notifications appeared retrospective (dated 12th January 2015), they do not violate law as they do not prejudicially affect vested rights. However, crucially, contributions cannot be demanded from 12th January 2015 because the Central Government failed to prescribe a definite rate then—specifying only a maximum ('not exceeding one-third of royalty') is insufficient legal certainty for a compulsory levy. Contributions are payable from 17th September 2015 (minerals other than coal/lignite/sand) or 20th October 2015 (coal/lignite/sand), or from DMF establishment date, whichever is later. The 31st August 2016 notification making contributions retrospectively payable was struck down as ultra vires."
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