Safiya Malik

The Madras High Court has directed the recovery of ₹5,832.29 crore from private mining companies involved in large-scale illegal beach sand mining in Tamil Nadu and ordered a Central Bureau of Investigation (CBI) probe into the alleged violations. The court upheld the findings of multiple government committees, which confirmed that these companies unlawfully extracted, transported, and exported beach sand minerals, including monazite, a substance crucial to India’s nuclear energy program. Noting the magnitude of the violations and the potential involvement of officials, the court ordered that an independent CBI investigation was necessary to ensure accountability and bring those responsible to justice.

The case originated as a suo motu public interest litigation (PIL) based on allegations of large-scale illegal beach sand mining in Tamil Nadu’s coastal districts of Thoothukudi, Tirunelveli, and Kanniyakumari. Initially filed by a petitioner, the PIL was later converted into a suo motu case by the High Court on January 28, 2016, in light of the seriousness of the allegations.

The key allegations involved unauthorized extraction and sale of heavy minerals such as ilmenite, rutile, zircon, garnet, and monazite by multiple private mining firms. Investigations revealed that monazite, which contains thorium and uranium, was illegally mined and exported, raising concerns over environmental damage, loss of public revenue, and potential risks to national security.

Reports from various committees, including those led by Mr. Gagandeep Singh Bedi, IAS, and Mr. Satyabrata Sahoo, IAS, confirmed widespread illegal mining activities. Following these findings, the Tamil Nadu government imposed a ban on all private mining operations and revoked transport permits. However, investigations revealed that illegal mining and transportation of minerals continued even after the ban was imposed.

The Madras High Court examined multiple reports, including the Bedi Committee Report, Sahoo Committee Report, and Reassessment Report, all of which consistently confirmed large-scale illegal mining, unauthorized transportation, and underreporting of extracted minerals.

Referring to the reassessment report, the court recorded that “the total quantity of illegally mined and transported beach sand minerals amounts to 16.04 lakh metric tonnes.” It also noted that “additional stocks amounting to 6,62,191.04 metric tonnes were found at various locations, unrelated to previously declared inventories.”

The Atomic Minerals Directorate’s (AMD) findings confirmed high concentrations of monazite in stored mineral stocks. The court recorded: “The presence of monazite in excess of permissible limits in several stock samples underscores the gravity of violations committed.”

The mining companies contended that they had valid leases and challenged the reports as biased. However, the court rejected these arguments, noting that “the burden of proof lies on the lessees to demonstrate lawful extraction, which they have failed to do.”

On the issue of royalty evasion, the court examined government records, which showed that ₹5,832.29 crore in revenue was lost due to unreported and unlawful mineral extraction. The court observed: “The companies cannot escape liability when official records and field inspections establish large-scale discrepancies in mining data.”

Recognizing the scale of the alleged violations and the possible complicity of officials in allowing illegal mining to continue, the Madras High Court directed the CBI to conduct an independent investigation. The court noted that “given the extensive nature of the violations, an impartial investigation by the CBI is warranted to ensure accountability and uphold the rule of law.”

The court also stated that an inquiry was necessary to determine whether monazite, a crucial mineral for India’s nuclear energy program, was smuggled out of the country. The judgment recorded: “The unlawful extraction, storage, and export of monazite raise serious concerns about national security, necessitating a thorough investigation.”

Based on its findings, the Madras High Court issued the following directives:

• The Tamil Nadu government is authorized to recover ₹5,832.29 crore from the identified private mining firms.

• The companies must pay the amount within a stipulated period, failing which additional penalties will apply.

• The CBI is directed to conduct a thorough investigation into the illegal mining operations and the possible involvement of officials.

• No further mining activities shall be permitted until all outstanding dues are settled.

• The Atomic Minerals Directorate and relevant regulatory agencies must strictly monitor and regulate the handling of monazite and other restricted minerals.

The court concluded: “The evidence presented establishes beyond doubt the extensive illegal mining operations carried out by private firms. Recovery of dues is essential to safeguard public resources, and an independent investigation is necessary to bring those responsible to justice.”

Case Title: Union of India v. Private Mining Companies & Ors.
Case Number: Suo Motu W.P. No. 1592 of 2015
Bench: Justice S.M. Subramaniam, Justice M. Jothiraman

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