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Issues: Whether approval under Section 5(1) of the Mines and Minerals (Development and Regulation) Act, 1957 for grant of a prospecting licence in respect of forest land could validly be issued before prior approval of the Central Government under Section 2 of the Forest (Conservation) Act, 1980.
Analysis: Section 2 of the Forest (Conservation) Act, 1980 contains a non obstante prohibition and requires prior approval of the Central Government before any State Government or other authority makes an order directing that forest land be used for any non-forest purpose. Prospecting and mining activity in forest land is a non-forest purpose. The scheme of the Forest (Conservation) Act and the Forest (Conservation) Rules, 2003 shows that the approval under Section 2 is intended to operate at the threshold, before the State or any other authority proceeds further under other enactments. The approval under Section 5(1) of the Mines and Minerals (Development and Regulation) Act, 1957 cannot be treated as a substitute for, or a step in place of, the prior approval required under the Forest (Conservation) Act, 1980. Any construction postponing forest clearance until after mineral approval would dilute the mandatory nature of Section 2 and defeat the environmental object of the statute.
Conclusion: Prior approval under Section 2 of the Forest (Conservation) Act, 1980 was a mandatory jurisdictional precondition, and the impugned approval under the Mines and Minerals (Development and Regulation) Act, 1957 was invalid and without jurisdiction.
Ratio Decidendi: Where forest land is proposed to be diverted for a non-forest purpose, no authority may take any effective step under another statute unless and until prior approval under Section 2 of the Forest (Conservation) Act, 1980 is first obtained.