Dismissing the authorities’ argument that the prior leaseholders had failed to meet compensatory afforestation and other prerequisites, the High Court has ruled in favor of transferring the Forest Clearance (FC) to the new leaseholders. The High Court’s decision pertains to three petitions: two filed jointly by MSPL Limited and Rahulkumar N Baldota and the third by Sri Rai Bahadur Seth Shreeram Narasingadas Pvt Ltd. In their collective judgment, Chief Justice Prasanna B Varale and Justice MGS Kamal stated that the authorities’ claims regarding the transfer of FC being contingent on specific conditions were novel and not supported by the Apex Court’s order or the notification’s terms.
In the case of MSPL and Baldota, they successfully acquired quarry leases through a public auction for 30.08 hectares of forest land in Ramanadurga village, Sandur, Ballari, and 60.66 hectares in Dharamapura village of the same taluk. Similarly, Narasingadsa Ltd participated in a bid for 74.86 hectares of KK Kaval, State Forest in Hosadurga in Chitradurga.
The previous leaseholders of these forest lands had obtained FCs. However, after winning the leases in the public auction, the new leaseholders secured all necessary clearances except for the FC. They argued that, based on the Supreme Court’s judgment in Samaja Parivartana Samudaya Vs State of Karnataka and an amendment to the Mines and Minerals Act, permissions and licenses should be transferred to subsequent lessees.
Nevertheless, when the FC was not transferred within 30 months, the Department of Mines issued a show-cause notice to revoke the Letter of Intent. This prompted them to seek relief from the High Court. In granting the petitions and instructing the authorities to transfer the FCs, the High Court emphasized, “While it may be reasonable to expect subsequent Category ‘C’ lessees to adhere to FC conditions and fulfill their terms, it is not acceptable to suggest that the failure of previous lessees to meet these conditions should obstruct the transfer of the FC to subsequent lessees.”
