Research › Search › Judgment

Jharkhand High Court · body

2025 DIGILAW 1998 (JHR)

NTPC Limited having its registered office at NTPC Bhawan v. State of Jharkhand through Principal Secretary, Department of Mines

2025-10-08

RAJESH KUMAR, SUJIT NARAYAN PRASAD

body2025
Order : Sujit Narayan Prasad, J. 1. Reference may be made to order dated 18 th September, 2025. 2. In pursuance thereto, Mr. Arava Rajkamal, Secretary, Department of Mines and Geology, Government of Jharkhand has appeared and submitted that since the matter pertain to the reduction of the amount of DMF from 30% to 10%, for which approval was taken from the Department as such some delay has been caused in filing the counter affidavit. Now, the counter affidavit has been filed on merit. 3. However, the Secretary, Department of Mines and Geology, Government of Jharkhand has assured this Court that henceforth he will take care that the counter affidavit be filed as per direction passed by the Court and in case of any failure, the erring officers will be taken to task. 4. The instant writ petition, under Article 226 of the Constitution of India, has been filed for the following relief(s): Prayer made in W.P.(C) No. 2756 of 2025 a. For the issuance of an appropriate writ(s), order(s) or direction(s) for commanding and directing the Respondents to charge and recover District Mineral Foundation (DMF) contribution at the rate of 10% of the royalty in respect of the coal block allocated to the Petitioner which was allotted under the Coal Mines (Special Provisions) Act, 2015, on 08.09.2015 and not at the higher rate of 30% currently being levied. b. For the issuance of an appropriate writ(s), order(s) or direction(s) for refund or adjust the excess amount of DMF contribution already paid by the Petitioner at the rate of 30% of royalty from the date of commencement of mining operations, on the basis that such deduction is contrary to the applicable statutory rules, including Rule 2(a) of the Mines and Minerals (Contribution to District Mineral Foundation) Rules, 2015 and Rule 6(i) of the Jharkhand District Mineral Foundation (Trust) Rules, 2016; Prayer made in W.P.(C) No. 3894 of 2025 a. For the issuance of an appropriate writ(s), order(s) or direction(s) to hold that the Respondents collecting charge 30% of the royalty in respect of the coal block allocated to the Petitioner which was allotted under the Coal Mines (Special Provisions) Act, 2015 is illegal and dehors the law including Rule 2(a) of the Mines and Minerals (Contribution to District Mineral Foundation) Rules, 2015 and Rule 6(i) of the Jharkhand District Mineral Foundation (Trust) Rules, 2016 and to further hold that Respondent can charge and recover District Mineral Foundation (DMF) contribution at the rate of 10% of the royalty in respect of the coal block allocated to the Petitioner which was allotted under the Coal Mines (Special Provisions) Act, 2015, on 08.09.2015. b. For the issuance of an appropriate writ(s), order(s) or direction(s) for Refund or adjust the excess amount of DMF contribution already paid by the Petitioner at the rate of 30% of royalty in excess of 10%, from the date of commencement of mining operations since March 2024, on the basis that such deduction is contrary to the applicable statutory rules, including Rule 2(a) of the Mines and Minerals (Contribution to District Mineral Foundation) Rules, 2015 and Rule 6(i) of the Jharkhand District Mineral Foundation (Trust) Rules, 2016; Factual aspect: 5. Since similar facts and prayers have been made in these writ petitions, as such for the sake of convenience, the brief facts of the first case, i.e., in W.P. (C) No. 2756 of 2025, is referred as under: 6. The Petitioner herein is a Government of India undertaking engaged in generation and supply of power, and is the allottee of the Chatti Bariatu Coal Mining Project (CBCMP), located in the State of Jharkhand. The Petitioner herein is a Government of India undertaking engaged in generation and supply of power, and is the allottee of the Chatti Bariatu Coal Mining Project (CBCMP), located in the State of Jharkhand. The said coal block was originally allocated to NTPC by the Ministry of Coal, Government of India, vide allocation letter No. 13016/29/2003-CA-I dated 25.01.2005, under the provisions of Section 3 (3)(a)(iii) of the Coal Mines (Nationalisation) Act, 1973. However, pursuant to the Order dated 24.09.2014 of the Hon'ble Supreme Court of India in Writ Petition (Crl.) No. 120 of 2012, the allocation was cancelled on 24.09.2014. 7. Subsequently, the Chatti Bariatu Coal Block was reallocated to the Petitioner under the provisions of the Coal Mines (Special Provisions) Act, 2015, by the Ministry of Coal, Government of India, vide allotment letter dated 08.09.2015. 8. In furtherance thereof, an allotment agreement was executed on 30.03.2015 between the Petitioner and the Nominated Authority, Government of India. The land required for the said project was acquired by the Central Government under Section 9 of the Coal Bearing Areas (Acquisition and Development) Act, 1957, and the land so acquired stood vested in NTPC under Section 11 of the said Act. 9. Thereafter, vide Gazette Notification G.S.R. 792(E) dated 20.10.2015, the Ministry of Coal, Government of India, framed the Mines and Minerals (Contribution to District Mineral Foundation) Rules, 2015, specifying the contribution to be made by the holders of mining leases or prospecting-cum-mining leases towards the District Mineral Foundation (DMF). In consonance with the said Central Rules, the Department of Industries, Mines and Geology, Government of Jharkhand, framed the Jharkhand District Mineral Foundation (Trust) Rules, 2016. 10. It is stated that the Petitioner has submitted representations on 20.01.2023, 12.12.2022, 03.05.2023 and 15.06.2023 before the Respondent No. 3, as well as before the Respondent No.2 representations dated 27.03.2023, as also on 02.03.2023 requesting correction of the applicable DMF rate to 10% and rectification of the deduction rate in the JIMMS portal. 11. The Respondent No. 3, after examining the representations, has already recommended the Respondent No. 2 vide letter dated 05.07.2023 for making the necessary correction in the JIMMS portal so that the correct DMF rate is reflected and only 10% of royalty is levied from the Petitioner. However, till date, the necessary corrections have not been made in the JIMMS portal, and 30% DMF continues to be deducted unlawfully. 12. However, till date, the necessary corrections have not been made in the JIMMS portal, and 30% DMF continues to be deducted unlawfully. 12. Being aggrieved thereof, the petitioner has approached this Court by filing the instant writ petitions seeking the reliefs as referred above. Analysis: 13. Counter affidavit has been filed by the State, in which the State has not contested the matter rather has come out with the decision at paragraph 16 that as per the available provision, the DMF contribution at the rate of 10% to be paid by the petitioner, has been considered by the answering respondents in light of the available provisions. At paragraph 18, it has further been stated that the respondent is ready to adjust the excessive contributions made if any by the petitioner by making the necessary changes on the JIIMS portal as well and the same has been initiated for technical change/upgradation which requires a time of at least 30 days. 14. For ready reference, the statement made from paragraph 15 to 18 are quoted and referred as under: “15. That it is stated and submitted that the petitioner was paying at the rate of 30% of the royalty towards the contributions of DMFT. 16. That it is stated and submitted that as per the available provision, the DMF contribution at the rate of 10% to be paid by the petitioner, has been considered by the answering respondents in light of the available provisions. 17. That it is stated and submitted that with respect to the excess contribution made by the petitioner, the said fact has also been considered by the answering respondent and it is worth to state here that it is a settled principle that in event any holder of a mining lease or a prospecting licence-cum- mining lease has mistakenly made contributions to the District Mineral Fund excessively, such a holder of a mining lease or a prospecting licence- cum-mining lease shall not be entitled to any refund but the contribution may be adjusted against future contributions, without the benefit of any interest. 18. That it is further stated and submitted that the answering respondent is ready to adjust the excessive contributions made if any by the petitioner by making the necessary changes on the JIIMS portal as well and the same has been initiated for technical change/up-gradation which requires a time of at least 30 days.” 15. 18. That it is further stated and submitted that the answering respondent is ready to adjust the excessive contributions made if any by the petitioner by making the necessary changes on the JIIMS portal as well and the same has been initiated for technical change/up-gradation which requires a time of at least 30 days.” 15. This Court, in view of the statement made in the counter affidavit in particular at paragraphs 16 and 18 is disposing of the writ petitions with a direction to comply with the statement made at paragraph 18 of the counter affidavit. 16. With the aforesaid observations and directions, the writ petitions stand disposed of. 17. Pending Interlocutory Applications, if any, stand disposed of. 18. Personal appearance of the Secretary, Department of Mines and Geology, Government of Jharkhand is dispensed with.