In Brief
Gujarat prohibited sand exports beyond its borders through Rules 44-BB (2010) and Rule 71. Sand extractors challenged these rules as exceeding state powers and violating inter-state trade freedom. The Supreme Court held that Section 15 of the MMDR Act, 1957 grants state power only to regulate grant of mining leases—not to control already-extracted minerals. Section 23-C, intended to prevent illegal mining, does not authorize restricting legal mineral transport. Such prohibitions violate Article 301 (freedom of trade). While Parliament may restrict inter-state trade in public interest, states cannot impose such restrictions via mining statutes. The Court dismissed the appeals, striking down the sand-export bans as ultra vires and constitutionally impermissible."
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