In Brief
A joint venture between Sunder Marketing Associates and Karamjeet Singh & Co. Ltd. won a mining lease auction for the Dadam quarry in Haryana with a bid of Rs. 115 crores per annum. Although Sunder Marketing was not originally qualified to participate alone, the lease was later transferred to it as sole lessee while KJSL was permitted to withdraw. The Supreme Court held this transfer illegal as it violated auction qualification rules. While permitting surrender of the lease under rules 25 and 41(v) due to the irregular circumstances, the Court imposed strict conditions including continued payment of dead rent until 30 November 2017, full implementation of mine closure plans, payment of all dues to employees, and directed strict enforcement of all applicable laws.
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