In Brief
Gujarat prohibited exporting sand (a minor mineral) mined within the State to other States through rules under the Mines and Minerals Act. Contractors and traders challenged these rules as ultra vires and violating inter-State trade freedom. The Supreme Court held that while the State may regulate mining leases, it cannot restrict movement of already-excavated, legally-mined minerals. Section 23-C empowers rules only against illegal mining, not legal trade. The prohibition violates Article 301 (trade freedom). Once minerals are legally extracted, the State cannot ban their interstate movement. The Court dismissed the appeals, upholding the High Court's judgment striking down the restrictive rules as unconstitutional.
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