ORDER : B.N. Kirpal, CJI. Report of the Central Empowered Committee regarding transfer of funds and related issues Further report of the Central Empowered Committee regarding transfer of funds and related issues has been filed. Copy of the same is being given to Mr. A.D.N. Rao. To come up for appropriate orders on 1-11-2002. IA No. 756 2. To be listed for hearing after three weeks before a Bench of which the Hon'ble Mr. Justice Y.K. Sabharwal and the Hon'ble Mr. Justice Arijit Pasayat are members. IA No. 276 with IAs Nos. 413, 437, 453 and 454 3. Mr. Kapil Sibal, learned Senior Counsel commenced his arguments at 2.45 p.m. and was on his legs when the Court rose for the day leaving the matter as part-heard. After I.A. Nos. 634-635 the cause title is the same as is on 29.10.2002, and before the said I.As. cause title was shown as follows: I.A. No. 276 with 413, 437, 453, 454, in W.P. (C) No. 202/1995, I.A. No. 566 in W.P.(C) No. 202/1995, I.A. No. 703 in W.P.(C) No. 202/1995 (Monitoring Report (First) of Central Empowered committee in W.P.(C) No. 202/1995). Coram & appearance: same as on 29-10-2002 Mr. Kapil Sibal resumed his arguments at 10.35 a.m. and concluded at 11.15 a.m. Thereafter, Mr. G.L. Sanghi and Mr. Ranjit Kumar made their submissions for 15 minutes each. Mr. Harish N. Salve, learned amicus curiae made his submissions from 11.45 a.m. to 12.05 p.m. Arguments concluded. The Court then made the following order: IA No. 276 with IAs Nos. 413, 437, 453 and 454 4. We are here concerned with the alleged encroachment into Tatokola Forest in the State of Karnataka. 5. On 29-7-1998, T.N. Godavarman Thirumulpad (18) v. Union of India, (2000) 10 SC 494, this Court directed the State of Karnataka to indicate the extent of encroachment in the forest land in the State. With regard to Tatokola Reserved Forest there were allegations regarding large-scale deforestation. Shri R.M.N. Sahay, Conservator of Forests was appointed as the Commissioner of this Court and directed to go to Tatokola Reserved Forest and to give a report about the present state of affairs in that forest. 6. Subsequently, on 7-5-1999 this Court passed another order on the receipt of the report of Shri Sahay. In the said report, Mr. Shri R.M.N. Sahay, Conservator of Forests was appointed as the Commissioner of this Court and directed to go to Tatokola Reserved Forest and to give a report about the present state of affairs in that forest. 6. Subsequently, on 7-5-1999 this Court passed another order on the receipt of the report of Shri Sahay. In the said report, Mr. Sahay had stated that there were large-scale encroachments and the State of Karnataka was required to give its response to the position indicated in the said report. What is, however, important is that this Court took note of the fact that survey was being conducted in Chikmangalur area by the Survey of India, and this Court by its order dated 7-5-1999 directed the Survey of India to continue with the survey operations and to give a report regarding encroachment in the Chikmangalur area of the forest. 7. The Survey of India then submitted its report which has been placed on record here. The said report describes the manner in which the actual survey of the reserved forest was carried out and along with the report a map of the area has been filed indicating the boundaries of the forest as well as the land therein which has been encroached upon. A list of the encroachers has also been included. 8. IA No. 453 filed by Mr. B.L. Shankar was that he was the owner of a coffee estate in Survey No. 3 and that land was not part of the Reserved Forest. 9. This application along with the other applications was forwarded to the Central Empowered Committee for consideration and report. 10. After hearing the applications in IAs Nos. 413, 437, 453 and 454 on 12-7-2002 and 5-8-2002, the Empowered Committee submitted its report on 5-9-2002. The Empowered Committee accepted the survey and the report of the Survey of India and came to the conclusion that as per the said report as well as the report of Shri Sahay, 611.23 acres of forest land had been encroached upon and came to the following conclusions: (1) The report given by the Survey of India about boundaries of Tatokola Reserved Forest and the extent of encroachment inside it should be accepted as the final report as the Survey of India is the apex survey organisation on survey matters in the country. The survey has been done by it using the latest equipments in a scientific manner. The authenticity and reliability of the survey report cannot be challenged. (2) As reported by the Court Commissioner and confirmed by the Survey of India Report, 611.23 acres of forest land has been encroached inside Tatokola Reserved Forest. Out of this, 556.04 acres has been encroached for coffee cultivation and 55.19 acres for other purposes. (3) The encroachments which have taken place inside Tatokola Reserved Forest need to be immediately evicted specially as these encroachments are for commercial gains. (4) Adequate steps have not been taken by the State Government for removal of encroachments in the past. In spite of appointment of a Court Commissioner and deep concern shown by this Court in the matter, the encroachments have been allowed to continue on one pretext or another such as pendency of joint survey report, Survey of India's Report and pendency of the cases filed in various courts. (5) After removal of encroachments, it is necessary to rehabilitate the encroached area by afforestation and other conservation measures. (6) Compensation for environmental losses caused due to encroachment should be recovered from the encroachers specially as these encroachments are for commercial gains. Similarly, compensation should also be recovered from the State Government if it does not take effective steps immediately for removal of encroachments. 11. The Empowered Committee then made the following recommendations: "(a) Shri R.M.N. Sahay, Court Commissioner's report about the forest area under encroachment in Tatokola Reserved Forest as confirmed by the Survey of India Report shall be treated as final and all encroachments reported therein shall be removed forthwith. (b) A notice shall be published in the local/vernacular newspapers at least seven days before the actual removal of encroachment is undertaken specifying to the extent feasible, the name of the encroacher, area under encroachment, the compartment number/survey number and the forest range from where the encroachments are to be removed in compliance with this order. (c) The Chief Secretary, Karnataka shall be personally responsible to ensure removal of such encroachments. The Director General of Police, Karnataka shall be responsible to ensure that police protection and help needed for removal of encroachments is provided as and when required. (c) The Chief Secretary, Karnataka shall be personally responsible to ensure removal of such encroachments. The Director General of Police, Karnataka shall be responsible to ensure that police protection and help needed for removal of encroachments is provided as and when required. (d) Compensation for environmental losses caused due to encroachments which have taken place in the instant case for commercial purposes, shall be recovered from the encroachers identified by the Court Commissioner @ Rs. 5 lakhs per hectare as an exemplary punishment. For any encroachments not removed by the State Government for any reason whatsoever within three months, compensation for continued environmental losses shall also be paid by the State Government @ Rs. 10,000 per hectare per month. The money so recovered shall be kept in a separate account and shall be used exclusively for forest protection and rehabilitation of encroached area with the concurrence of the Central Empowered Committee. (e) The action-taken report shall be filed by the Chief Secretary, Karnataka before the Central Empowered Committee every month till the encroachments are completely removed and all the compensation payable by the encroachers/State Government are recovered/deposited; and (f) The earlier orders made in the matter shall be read, modified wherever necessary to this extent. This order will operate and be complied with by all concerned, notwithstanding any order at variance, made or which may be made hereafter, by any authority, including the Central or any State Government or any court (including the High Court) or tribunal." 12. On behalf of Shri Shankar it was contended by Mr. Kapil Sibal that he was the owner of 32 acres and 26 guntas of land which is a part of Survey No. 3 which was not a part of the Reserved Forest. He drew our attention to a Government Notification issued by the Maharajah of Mysore dated 25-4-1936 whereby Tatokola block was created. The boundaries of the forest were set out in the enclosure to the said Notification and the schedule described the boundaries in greater detail. The said Notification also mentioned that the land mentioned in Enclosure Nos. I, II, III and IV were not to form part of the forest. The case of Mr. Shankar was that Enclosure No. III clearly stipulated that Survey No. 3 of Kanchegowda Coffee Estate was not to be regarded as a part of the forest. Mr. Kapil Sibal submitted that Mr. I, II, III and IV were not to form part of the forest. The case of Mr. Shankar was that Enclosure No. III clearly stipulated that Survey No. 3 of Kanchegowda Coffee Estate was not to be regarded as a part of the forest. Mr. Kapil Sibal submitted that Mr. Shankar is entitled to retain 32 acres and 26 guntas of land in Survey No. 3 and the report of the Survey of India does not indicate this area of land which belongs to him. Grievance was also sought to be made that his client had not been heard. 13. What has been done by the Survey of India is to identify the boundaries of Tatokola Reserved Forest. These boundaries have been identified in accordance with the terms of the Notification of 1936. The said Notification provided that in the north the supporting point of the boundary was from the south-west corner of Survey No. 181 of Kundur Village of Chikmangalur Taluk. Report of the Survey of India, states that it was not possible to identify this point at the time when the work of demarcation was commenced. It then describes the manner in which it commenced the work from the nearest available Survey of India geographical control point. This point was identified and on that basis it proceeded to determine the said south-west corner of Survey No. 181 of Kundur Village, the starting point of the Tatokola village boundary. The report indicates that when this point was determined, embedded stone at that place was found. The correctness of this point was cross-checked and when it tallied the Survey of India then also found old pillars indicating the boundary of the forest. Some new pillars were also erected by the Survey of India and on this basis the boundary lines were drawn out, the encroachers identified and a plan was drawn up which has now been placed on record in this Court. 14. Some new pillars were also erected by the Survey of India and on this basis the boundary lines were drawn out, the encroachers identified and a plan was drawn up which has now been placed on record in this Court. 14. According to this plan of the Survey of India Survey No. 3 is clearly shown as not being included in the Tatokola Reserved Forest, but what this plan does indicate is that certain area of Survey No. 4 which forms part of the Reserved Forest has been encroached upon along with the boundary of Survey No. 4 and Survey No. 3 This seems to indicate that persons in possession of land in Survey No. 3 could be those who have encroached into the adjoining area forming part of Survey No. 4 which is included in Tatokola Forest. 15. In our opinion, report of the Survey of India and the map drawn by it is not open to challenge. The State of Karnataka has in its affidavit stated that it accepts the correctness of the report. Survey of India is an organisation (the apex one), whose duty it is to prepare the plans after carrying out such surveys. It is on the basis of the aforesaid Survey of India Report that the Central Empowered Committee recommended that the encroachers should be removed from the forest. Keeping this report in mind, the State of Karnataka in its affidavit of Smt. S.R. Vatsala dated 18-10-2002 has stated that the survey report of the Survey of India has been accepted and action has been initiated to evict the encroachers in Tatokola Forest. 16. It is stated by Mr. G.L. Sanghi on behalf of the State of Karnataka that according to Section 64-A of the Karnataka Forest Act, 1963 summary procedure can be adopted for evicting the encroachers. The said section of the Act, inter alia, provides that any person who has unauthorisedly grabbed land in the Reserved Forest may be summarily evicted by the Forest Reserve Officer but before evicting the person under this sub-section has to be given a reasonable opportunity of being heard. 17. There can be no manner of doubt that any land which forms part of Tatokola Reserved Forest could only belong to the Government. Once the forest was established in the year 1936, all other rights therein came to an end. 17. There can be no manner of doubt that any land which forms part of Tatokola Reserved Forest could only belong to the Government. Once the forest was established in the year 1936, all other rights therein came to an end. The survey numbers of the forest are indicated in the plan prepared by the Survey of India and there is no dispute that Survey No. 4 forms part of the said forest. It has not been contended by any one that Survey No. 3 was part of the forest and, therefore, any person who owns land which forms part of Survey No. 3 as identified by the Survey of India would be entitled to enjoy the same and that land did not form part of the Reserved Forest. What the Survey of India had to do was really to demarcate the boundary of the Reserved Forest and to indicate which portion of land fell in Survey No. 4 and which portion of the land in that area fell outside the said Reserved Forest including Survey No. 3. In the plan filed, this has been indicated and according to the said plan portions of Survey No. 4 have been shown to be encroached upon. The total area in occupation of the encroachers in the said forest is stated to be more than 611.2309 acres. It may also be noticed that though in the Notification of 1936 it was stated that the total area of the forest area was 2312 acres and 38 guntas, but as per the report of the Survey of India the survey which was conducted with the help of the latest scientific instruments show that the correct area of the forest was 2269.198 acres. This area of land stands identified in the plan now drawn up by the Survey of India. 18. From the aforesaid, it is quite clear that all encroachers into the Tatokola Forest have to be evicted. It is no doubt true that according to Section 64-A a show-cause notice has to be issued. But that can only be with a view to enable the person to whom notice is issued to show that his land does not fall within the boundaries of the forest as drawn up by the Survey of India. It is no doubt true that according to Section 64-A a show-cause notice has to be issued. But that can only be with a view to enable the person to whom notice is issued to show that his land does not fall within the boundaries of the forest as drawn up by the Survey of India. If the land is identified as falling within the Survey of India boundary then there could be no other defence open to the person concerned and the State would be under an obligation and duty to evict the encroacher, by force if necessary. 19. Mr. Ranjit Kumar, the learned Senior Counsel appearing on behalf of Mr. Seshagowda submitted that his client is the owner of the land which formed part of Enclosure No. II and that was also excluded from the forest. As we have already indicated, the determination of the forest boundaries by the Survey of India is final and binding on all. An area which falls within the said forest is forest land and cannot be encroached upon. If the area which is in physical occupation of Seshagowda falls within that forest then the same has to be vacated by him and he has to be evicted. 20. We accept the report of the Central Empowered Committee of September 2002. Result of this is that the report of Shri Sahay regarding encroachment in Tatokola Reserved Forest as confirmed by the Survey of India Report shall be treated as final and all encroachments reported therein shall be removed. 21. In conclusion: (a) Shri R.M.N. Sahay, Court Commissioner's Report about the forest area under encroachment in Tatokola Reserved Forest as confirmed by the Survey of India Report shall be treated as final and all encroachments reported therein shall be removed forthwith. (b) A notice shall be published in the local/vernacular newspapers at least seven days before the actual removal of encroachments is undertaken specifying to the extent feasible, the name of the encroacher, area under encroachment, the compartment number/survey number and the forest range from where the encroachments are to be removed in compliance with this order. (c) Chief Secretary, Karnataka shall be personally responsible to ensure removal of such encroachments. The Director General of Police, Karnataka shall be responsible to ensure that police protection and help needed for removal of encroachments is provided as and when required. (c) Chief Secretary, Karnataka shall be personally responsible to ensure removal of such encroachments. The Director General of Police, Karnataka shall be responsible to ensure that police protection and help needed for removal of encroachments is provided as and when required. (d) The encroachers are liable to compensate for the losses caused due to the encroachments especially when the land encroached upon has been utilised for commercial purposes. We, however, take a lenient view and direct that if the encroachers voluntarily vacate the encroached land and hand over the same to the Chief Conservator of Forests within three months from today i.e. on or before 31-1-2003, they will not be liable to pay any compensation but if they continue to remain in occupation then they will have to pay Rs. 5 lakhs per hectare per month to the State Government. Money so recovered shall be kept in a separate account and shall be used exclusively for forest protection and rehabilitation of the encroached area with the concurrence of the Central Empowered Committee. (e) Action-taken report shall be filed by the Chief Secretary, Karnataka before the Central Empowered Committee every month till the encroachments are completely removed and all the compensation payable by the encroachers has been deposited. Copy of the action-taken report also be filed in this Court. 22. Liberty is given to the Central Empowered Committee to seek further directions. 23. The Court records its appreciation for the commendable work done by Shri R.M.N. Sahay, presently the Chief Conservator of Forests, Karnataka. 24. This order will not prevent the Survey of India from carrying out any other survey as may be necessary. 25. IAs are, accordingly, disposed of. IA No. 703 26. List after four weeks before a Bench of which the Hon'ble Mr. Justice Y.K. Sabharwal and the Hon'ble Mr. Justice Arijit Pasayat are members. IA No. 780 27. Learned amicus curiae has submitted a fourth report of the Central Empowered Committee. As per this report thirty-one additional advertisements have been found to be painted on the rocks in the Kullu-Manali area. Details of this are contained in an annexure to the report. Let notice be issued to the concerns specified in column 2 of the said Annexure A requiring them to show cause why they should not be liable to pay damages as well as costs, returnable in the last week of November, 2002. Details of this are contained in an annexure to the report. Let notice be issued to the concerns specified in column 2 of the said Annexure A requiring them to show cause why they should not be liable to pay damages as well as costs, returnable in the last week of November, 2002. List it before a Bench of which the Hon'ble Mr. Justice Y.K. Sabharwal and Mr. Justice Arijit Pasayat are members. IA No. 566 28. On 23-11-2001 Mr. Kirit N. Raval, the learned Additional Solicitor-General during the hearing of IAs Nos. 419 and 420 had placed on record a statement showing the position of the cases approved for diverting forest area for non-forest purposes, compensatory afforestation stipulated and what was actually done, funds to be received and were actually received and utilised. This Court then issued notices to the defaulting States which had recorded poor progress in utilisation of the said funds and had not submitted quarterly progress reports. 29. The order of 23-11-2001, T.N. Godavarman Thirumulpad (45) v. Union of India, (2007) 15 SCC 288 , envisaged a scheme being formulated by the Ministry of Environment and Forests, inter alia, for ensuring proper utilisation of the funds for compensatory afforestation in respect of permission granted for user-agency of forest land. 30. The Central Empowered Committee examined this question while dealing with IA No. 566 and after notice to all State Governments and hearing the learned counsel has submitted a report dated 5-9-2002. The report, inter alia, provides that there should be a change in the manner in which the funds are released by the State Governments relating to compensatory afforestation. It has, therefore, been observed in this report by the Central Empowered Committee that it is desirable to create a separate fund for compensatory afforestation wherein all the monies received from the user-agencies are to be deposited and subsequently released directly to the implementing agencies as and when required. The funds received from a particular State would be utilised in the same State. 31. There was also consensus amongst the States and the Union Territories that the funds for compensatory afforestation which were to be recovered from the user-agencies as well as the unutilised funds lying with the States should be transferred to such a fund. The funds received from a particular State would be utilised in the same State. 31. There was also consensus amongst the States and the Union Territories that the funds for compensatory afforestation which were to be recovered from the user-agencies as well as the unutilised funds lying with the States should be transferred to such a fund. This fund will not be part of general revenues of the Union, of the States or part of the Consolidated Fund of India. 32. The said report of the Central Empowered Committee contemplates the involvement of user-agencies for compensatory afforestation. The report also refers to the permissible activities under compensatory afforestation, adequate compensation to be received for loss of forest land and funds for catchment area treatment plant. The Committee has also made eight recommendations. Copy of the report of September 2002 of the Central Empowered Committee was given to the counsel for the parties. An affidavit on behalf of the Union of India in response to the said report has been filed. In para 5 of the same, it is being submitted by the Ministry of Environment and Forests that it accepts the recommendations of the Central Empowered Committee in principle. It is, further, mentioned in this affidavit that major institutional reorganisation of the present mechanism has to be undertaken and that it was proposed that comprehensive rules would be framed which will inter alia also relate to the procedure and compensation. It is also proposed that there will be a body for the management of the Compensatory Afforestation Funds (CAF). The proposal in this affidavit of the Union of India is that the said body of management would be composed of a Director General of Forests and Special Secretary who will be the ex officio Chairman and Inspector General of Forests who will be the ex officio Member Secretary. Comprehensive rules, etc. will be placed before this Court for examination. 33. No other State has filed any response to the said report of the Central Empowered Committee. It is, therefore, presumed that the State Governments are not opposed to the said report and like the Union of India, they have accepted the same. 34. We have examined the said report and are of the opinion that it merits acceptance by us as well. It is, therefore, presumed that the State Governments are not opposed to the said report and like the Union of India, they have accepted the same. 34. We have examined the said report and are of the opinion that it merits acceptance by us as well. As recommended by the Central Empowered Committee we direct as follows: (a) The Union of India shall within eight weeks from today frame comprehensive rules with regard to the constitution of a body and management of the Compensatory Afforestation Funds in concurrence with the Central Empowered Committee. These rules shall be filed in this Court within eight weeks from today. Necessary notification constituting this body will be issued simultaneously. (b) Compensatory Afforestation Funds which have not yet been realised as well as the unspent funds already realised by the States shall be transferred to the said body within six months of its constitution by the respective States and the user-agencies. (c) In addition to above, while according transfer under the Forest Conservation Act, 1980 for change in user-agency from all non-forest purposes, the user-agency shall also pay into the said fund the net value of the forest land diverted for non-forest purposes. The present value is to be recovered at the rate of Rs. 5.80 lakhs per hectare to Rs. 9.20 lakhs per hectare of forest land depending upon the quantity and density of the land in question converted for non-forest use. This will be subject to upward revision by the Ministry of Environment and Forests in consultation with the Central Empowered Committee as and when necessary. (d) "Compensatory Afforestation Fund" shall be created in which all the monies received from the user-agencies towards compensatory afforestation, additional compensatory afforestation, penal compensatory afforestation, net present value of forest land, Catchment Area Treatment Plan Funds, etc. shall be deposited. The rules, procedure and composition of the body for management of the Compensatory Afforestation Fund shall be finalised by the Ministry of Environment and Forests with the concurrence of the Central Empowered Committee within one month. (e) The funds received from the user-agencies in cases where forest land diverted falls within protected areas i.e. area notified under Sections 18, 26-A or 35 of the Wild Life (Protection) Act, 1972, for undertaking activities related to protection of biodiversity, wildlife, etc. shall also be deposited in this fund. (e) The funds received from the user-agencies in cases where forest land diverted falls within protected areas i.e. area notified under Sections 18, 26-A or 35 of the Wild Life (Protection) Act, 1972, for undertaking activities related to protection of biodiversity, wildlife, etc. shall also be deposited in this fund. Such monies shall be used exclusively for undertaking protection and conservation activities in protected areas of the respective States/Union Territories. (f) The amount received on account of compensatory afforestation but not spent or any balance amount lying with the States/Union Territories or any amount that is yet to be recovered from the user-agency shall also be deposited in this fund. (g) Besides artificial regeneration (plantations), the fund shall also be utilised for undertaking assisted natural regeneration, protection of forests and other related activities. For this purpose, site-specific plans should be prepared and implemented in a time-bound manner. (h) The user-agencies, especially the large public sector undertakings such as Power Grid Corporation, NTPC, etc. which frequently require forest land for their projects should also be involved in undertaking compensatory afforestation by establishing special purpose vehicle. Whereas the private sector user-agencies may be involved in monitoring and most importantly, in protection of compensatory afforestation. Necessary procedure for this purpose would be laid down by the Ministry of Environment and Forests with the concurrence of the Central Empowered Committee. (i) Plantations must use local and indigenous species since exotics have long-term negative impacts on the environment. (j) An independent system of concurrent monitoring and evaluation shall be evolved and implemented through the Compensatory Afforestation Fund to ensure effective and proper utilisation of funds. 35. Place it before a Bench of which the Hon'ble Mr. Justice Y.K. Sabharwal and the Hon'ble Mr. Justice Arijit Pasayat are members for examination of the rules. IAs Nos. 634-35, 697 and 698-L 36. IAs Nos. 697 and 698 are taken on board. 37. These applications have been filed for permission to erect transmission lines by Power Grid Corporation, which lines are to pass through the Rajaji National Park. 38. Since the filing of these applications lot of discussion has taken place, ground situation examined and now it is reported by the learned counsel for the applicant that through the proposed corridor where the transmission lines will be erected 14,739 trees will have to be cut. 38. Since the filing of these applications lot of discussion has taken place, ground situation examined and now it is reported by the learned counsel for the applicant that through the proposed corridor where the transmission lines will be erected 14,739 trees will have to be cut. Permission for erecting the lines through the Rajaji National Park and cutting these trees had been accorded by the Union of India as well as the State of Uttaranchal. Permission was not made operative because of the earlier orders of this Court. 39. Taking all circumstances into consideration, these applications are allowed. Permission is granted to Power Grid Corporation to erect the transmission lines through the Rajaji National Park. The aforesaid 14,739 trees will be cut by the Forest Department of the State of Uttaranchal under the supervision of the Central Empowered Committee. Trees so cut shall be sold by the Forest Department under the supervision of the Central Empowered Committee by public auction. The amount so realised as well as the sums payable by Power Grid Corporation for afforestation, etc. will be kept by the Central Empowered Committee in a fixed deposit initially for a period of three months and with the constitution of the body for the management of the Compensatory Afforestation Funds, the principal amount so realised by the Central Empowered Committee shall be transferred to the said body. This permission which is granted will be operational on Rs. 50 crores being deposited with the Central Empowered Committee who shall deposit the same in fixed deposit and after twelve weeks transfer the same to the body constituted for the purpose of managing the Compensatory Afforestation Funds. Monitoring report (First) of the Central Empowered Committee 40. We have perused the first monitoring report of the Central Empowered Committee. Three suggestions have been made in the said report. First is that the ban with regard to issue of licence for establishment of new sawmills or establishment of new wood-based industries in the North-Eastern States should be extended by a further period of five years. The second prayer is that the High-Powered Committee may be allowed to dispose of all the assets of the defaulting units who have not paid the penalty imposed by the said Committee on the wood-based units in North-Eastern States. It is stated that only a small fraction of the penalty imposed has so far been realised. The second prayer is that the High-Powered Committee may be allowed to dispose of all the assets of the defaulting units who have not paid the penalty imposed by the said Committee on the wood-based units in North-Eastern States. It is stated that only a small fraction of the penalty imposed has so far been realised. The other recommendation is that the ban of issuing further permission or licence to all unlicensed sawmills, veneer and plywood industries now imposed in the State of Maharashtra and in the State of Uttar Pradesh should be extended to all other States in India. 41. Despite notice, there is no opposition to this report. Affidavit has been filed by the Union of India accepting this report. 42. We, accordingly, direct as follows: (1) The ban imposed with regard to the opening of the new sawmills and other wood-based industries by this Court's order dated 15-1-1998, T.N. Godavarman Thirumulpad (9) v. Union of India, (1998) 2 SCC 59 , in the State of Nagaland is extended by a further period of five years. (2) The High Powered Committee is allowed to dispose of the assets on such defaulting units, including plants, machinery, land, shed, timber and timber products who have not paid the penalty imposed by the High Powered Committee of the wood-based units of North-Eastern States. This will be subject to such orders which may be passed by the Central Empowered Committee. 43. No State or Union Territory shall permit any unlicensed sawmills, veneer, plywood industry to operate and they are directed to close all such unlicensed unit forthwith. No State Government or Union Territory will permit the opening of any sawmills, veneer or plywood industry without prior permission of the Central Empowered Committee. The Chief Secretary of each State will ensure strict compliance with this direction. There shall also be no relaxation of rules with regard to the grant of licence without previous concurrence of the Central Empowered Committee. 44. It shall be open to apply to this Court for relaxation and or appropriate modification or orders qua plantations or grant of licences. With respect to files received in original from Damoh and inspection report submitted by Mr. M.K. Sharma, Additional Director General of Forest and enquiry officer 45. Twenty-one files referred to in the office report of 10-10-2002 as per Item 8 at p. 16 be sent to the Central Empowered Committee. With respect to files received in original from Damoh and inspection report submitted by Mr. M.K. Sharma, Additional Director General of Forest and enquiry officer 45. Twenty-one files referred to in the office report of 10-10-2002 as per Item 8 at p. 16 be sent to the Central Empowered Committee. Illegal mining in Aravallis 46. The second monitoring report of the Central Empowered Committee dated 28-10-2002, has been received from the Central Empowered Committee. This report deals with the mining which is termed as illegal in the Aravalli Hills. It is stated in this report that the members of the Central Empowered Committee visited the affected areas on 27-10-2002, namely, the forest area in the Aravalli Hills ? Kote and Alampur Villages. The report states that mining operations are being carried out in this area which is a forest area which was being re-created by plantations under the Aravalli Mining Programme funded by the Japanese Government in the early nineties. We, prohibit and ban all mining activity in the entire Aravalli Hills. This ban is not limited only to the hills encircling Kote and Alampur Villages but extends to the entire hill range of Aravalli from Haryana, The word "Dholpur" replaced by "Haryana" vide T.N. Godavarman Thirumulpad (59) v. Union of India, (2009) 17 SCC 760 , para 1 thereof to Rajasthan. The Chief Secretary, State of Haryana and Chief Secretary, State of Rajasthan are directed to ensure that no mining activity in the Aravalli Hills is carried out, especially, in that part which has been regarded as forest area or protected under the Environment (Protection) Act. IAs Nos. 776, 791, 792 and 800 47. Issue notice returnable after four weeks. List before a Bench of which the Hon'ble Mr. Justice Y.K. Sabharwal and the Hon'ble Mr. Justice Arijit Pasayat are members. Second report of the Central Empowered Committee 48. The second report of the Empowered Committee for the State of Madhya Pradesh constituted by this Court's order dated 12-5-2001, T.N. Godavarman Thirumulpad (43) v. Union of India, (2007) 15 SCC 283, has been submitted. The same is taken on record. 49. The Court records its appreciation to the members of the Committee comprising: 1. R. Rajamani ? Chairman 2. R.D. Sharma ? Member 3. Mahendra Vyas ? Member 4. Dr. Ram Prasad ? Member 5. A.R. Chadha ? Member for the good work done. Rest of the IAs 50. The same is taken on record. 49. The Court records its appreciation to the members of the Committee comprising: 1. R. Rajamani ? Chairman 2. R.D. Sharma ? Member 3. Mahendra Vyas ? Member 4. Dr. Ram Prasad ? Member 5. A.R. Chadha ? Member for the good work done. Rest of the IAs 50. Adjourned. List after four weeks before a Bench of which the Hon'ble Mr. Justice Y.K. Sabharwal and the Hon'ble Mr. Justice Arijit Pasayat are members.