Karnataka HC dismisses plea by mining company

BANGALORE: The Karnataka high court has imposed a fine of Rs 1 lakh upon Srinivasa Minerals Trading Company, Hospet in Bellary to be payable to the authorities after dismissing a petition filed by the company in 2008.
A division bench headed by Chief Justice D H Waghela has also directed the state government to immediately to en cash (before September 30) the bank guarantee of Rs 2,24,28,100 (market value of iron ore) furnished by the company in 2008 in order to lift around 29,000 metric tonnes of iron ore in their stock yard.
Interestingly, after getting permission of the court to lift the ore in 2008 after furnishing of the bank guarantee equal to the sum of the market value of the commodity, this petition was not pursued for long.
However, during December 2013-January 2014 period, the company wanted to withdraw the petition. The same was not allowed.
Thereafter, the company had argued that the bank guarantee cannot be en cashed as the burden of proving illegal mining is on the government.
However, the bench disagreed with the same and noted that it is the petitioner company which has to prove the same and dismissed the petition.
The bench has noted that the areas where the ore was alleged to have mined was in forest land as determined by local DC 2012.