In Brief
Geomysore and Deccan were granted reconnaissance permits to explore gold-bearing areas. After discovering evidence of gold deposits, they applied for prospecting licences. The State of Karnataka then sought the Central Government's approval to reserve the same areas for its own public sector undertaking, Hutti Gold Mines. The Supreme Court held that while States own minerals, the Union controls their regulation. The Central Government may independently consider multiple factors—economic, policy-based, and public interest—when approving reservation requests. Since the private companies had already filed prior prospecting applications, and the policy favoured private investment, the Central Government was justified in rejecting the reservation request and directing the State to process the private companies' applications.",
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