In Brief
The Kerala Government declined to grant mining leases for beach sand minerals (ilmenite, rutile, zircon, etc.) to a private company, citing its policy that such minerals would be exploited only by public sector undertakings. The Supreme Court was divided. Justice Thakur held that without formal statutory reservation under Section 17A(2) of the Mines and Minerals (Development and Regulation) Act—requiring Central Government approval and gazette notification—the Government could not rely on its Industrial Policy alone to deny the leases. Justice Banumathi, in dissent, held that the State's ownership of minerals and the statutory power under Section 17A(2) supported the policy, and the doctrine of promissory estoppel did not apply as the lease was withdrawn within ten days. The majority dismissed the appeals, holding the High Court decision valid.
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