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of <h1>Court rules contributions to District Mineral Foundations not retrospective, sets specific dates for different minerals. Invalid notification struck down.</h1> <h3>Federation of Indian Mineral Industries & ors. Versus Union of India & Anr.</h3> Federation of Indian Mineral Industries & ors. Versus Union of India & Anr. - TMI Issues Involved:1. Establishment of the District Mineral Foundation (DMF) under the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act).2. Retrospective effect of the establishment of DMFs.3. Contributions to the DMFs by holders of mining leases or prospecting licences-cum-mining leases.4. Validity of notifications issued by the Central and State Governments regarding DMFs.5. Effective dates for contributions to the DMFs.Issue-wise Detailed Analysis:1. Establishment of the District Mineral Foundation (DMF):The petitions relate to the establishment of the DMF under the MMDR Act, 1957, and the contributions required from mining leaseholders. Section 9B of the MMDR Act mandates the State Government to establish a non-profit trust called the DMF in districts affected by mining operations. The DMF's objective is to work for the interest and benefit of persons and areas affected by mining operations. The holder of a mining lease must pay an amount equivalent to a percentage of the royalty to the DMF, as prescribed by the Central Government.2. Retrospective Effect of the Establishment of DMFs:The petitioners argued that the DMFs could not be established retrospectively from a date prior to the notification. The Court held that the DMFs were not established retrospectively, even though notifications established them from a date anterior to the notification. The establishment did not affect vested rights, and the notifications could be read as operational from the date of publication. The Court referenced the decision in A. Thangal Kunju Musaliar v. M. Venkitachalam Potti, stating that fixing a date anterior to the notification does not attract the principle of disfavouring retrospective operation.3. Contributions to the DMFs:The petitioners challenged the requirement to make contributions to the DMFs from 12th January 2015. The Court held that contributions could not be insisted upon from this date due to the Central Government's failure to prescribe the rate on 12th January 2015. The contributions are required from the date the rates were prescribed: 17th September 2015 for minerals other than coal, lignite, and sand for stowing, and 20th October 2015 for coal, lignite, and sand for stowing, or from the date the DMF was established, whichever is later.4. Validity of Notifications Issued by the Central and State Governments:The Court examined the validity of notifications issued by the Central and State Governments. The Central Government issued directions to establish the DMF from 12th January 2015. However, the Court held that the rule-making power under the MMDR Act does not permit retrospective operation. The notification dated 31st August 2016, which substituted the requirement that the contribution 'shall be paid with effect from 12th January 2015,' was struck down as ultra vires.5. Effective Dates for Contributions to the DMFs:The Court concluded that contributions to the DMFs are required:- For minerals other than coal, lignite, and sand for stowing from 17th September 2015.- For coal, lignite, and sand for stowing from 20th October 2015 or the date of establishment of the DMF, whichever is later.Conclusion:The Court held that:1. DMFs established from a date prior to the notifications are not retrospective.2. Establishment from 12th January 2015 does not affect vested rights.3. Contributions cannot be insisted upon from 12th January 2015 due to the lack of prescribed rates.4. Contributions for minerals other than coal, lignite, and sand for stowing are required from 17th September 2015.5. Contributions for coal, lignite, and sand for stowing are required from 20th October 2015 or the date of DMF establishment, whichever is later.6. The notification dated 31st August 2016 is invalid and struck down.The Court granted time until 31st December 2017 for full contributions to the DMFs, failing which interest at 15% per annum would apply. Mistaken contributions made prior to the determined dates can be adjusted against future contributions without interest. All petitions and pending applications were disposed of accordingly.
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