M/s. Sri Balaji Granites v. 1, The State of Telangana

Petition Under Article 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a Writ, Order or direction more particularly one in the nature of Writ of Mandamus declaring the action of the Respondents in blocking the lD No, 2011020125, in respect of the leased areas of the Petitioner over an extents of

2.86 Hects in Sy.No. 556/A,B,D,E of Nagulamalyala Village of Kothapally Mandal, Karimnagar District during the pendency of the Revision Applications dated 20.02.2025 as illegal arbitrary and against the Principles of Natural Justice and violative of Article 14 and 21 of Constitution of lndia and also declare the action of Respondents in not issuing the dispatch permits as illegal arbitrary and againsl the Principles of Natural Justice and consequently direct the Respondents to I issue dispatch permrts to the Petitioners by unblocking the lD No. 201102O12b, for the granite blocks to be dispatched from the leased areas of the Petitioner. |.A.NO:1 OF 2025 Petition Under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pteased to direct the Respondents to issue dispatch permits to the Petitioners by un[locking the lD No. 2011020125 pending disposal of the above writ petition. Counsel for the Petitioner : SRI P.GlRl KRISHNA Counsel for the Respondents : cP FOR MINES AND GEOLOGY The Court made the following ORDER I d Y i THE HONOURABLE SRI JUSTICE K. LAKSHMAN WRIT PETITION N0.7686 0F 2025 ORDER: Heard Sri P.Giri Krishna, learned counsel for the petitioner and learned Assistant Government pleader for Mines & Geologr Department for the respondents.

2. Petitioner unit deals \ rith the business of quarrying granite in Karimnagar District. 4ft respondent has granted lease rights to the petitioner unit for qr*rying granite to an extent of 2.86 hectares in Survey No.556/A,B,D,E of Nagulamalyala Village of Kothapally Mandal, Karimnagar District. According to the petitioner, the lease is subsisting and it is continuing quarrying operations in accordance with the relevant Rules, Regulations including Telangana State Minor Mineral Concession Rules, 1966 (for short, 'the Rules, 1966).

3. Placing reliance on the Appraisal report dated

29.05.2013 of ttre Vigilance and Enforcement Department requesting the Government to issue suitable instructions to take necessar5z action against certain agencies including M/s. Swetha Agencies, Karimnagar Railway Stock yard, i ( Karimnagar District, which is a transporting agency for transportation of granite blocks through Railways by recording lesser measurements. 3'd respondent has issued show cause notice dated 18.04.2022. As a follow up action, technical staff of 3'd respondent verified the railway consignment-wise receipts, transit forms and details submitted by M/s. Swetha Agencies and it was noticed that during the period frorn 2OO8-2011, the petitioner transported, 672 granite blocks for a differential quantity of 4939.515 CBM (as per Railway weight). Therefore, the 3'd respondent requested the petitioner to submit explanation as to why action should not be taken under RuIe 26(3)(ii) of the Rules, L966. 3.d respondent has also issued demand notice dated

28.12.2022 for Rs.46,05,323/ - towards normal seigniorage fee with firre times penalty of Rs.2,29,5O,471/-, in total for Rs.2,75,55,794 /-. Petitioner has Iiled a revision against the said demand notice in terms of Rule 35A of the Rules, L966 before 1.t respondent. The same is pending.

4. While the matter stood thus, 2"d respondent has issued a letter dated 25. 11.2024 to the District Collectors requesting them to block the IDs of certain quarry lease L 3 holders for non-payment of amounts against the demand notices and to take measures to prevent illegal transportation of granite blocks. Petitioner's ID bearing No.2011O20125 is also blocked. Challenging the same, petitioner filed the present writ petition.

5. During the course of hearing, Sri P.Giri Krishna, learned counsel lor the petitioner, on instructions, would submit that petitioner will pursue the said revision, which is pending with the l"t respondent and petitioner is ready to pay the normal seigrriorage fee i.e., Rs.46,05,323/- mentioned in the demard notice dated 28.12.2022 in two (02) installments.

6. Learned Assistant Government Pleader for Mines & Geologr Department for the respondents, on instructions, would submit that 1"t respondent will dispose of the revision filed by the petitioner and the petitioner has to pay the normal seigniorage fee. t \

7. Vide order dated 13.02.2025 in W.P.No.42O7 of 2025, this Court placing reliance on the order dated

30.01.2025 passed by this Court in W.P.No.2518 of 2025 directed the respondent authorities to unblock the petitioner's 4 I ID on petitioner paying 1OO% of normal seigniorage fee in respect of transport/dispatch permits that are generated hereinafter. Petitioner herein is also standing on the very same footing. To maintain parity, petitioner is also entitled for the very same relief. Moreover, in the present case, petitioner is ready to pay the entire normal seigniorage fee in respect of tralsport/dispatch permits that are generated in two (O2) installments.

8. In the light of the same, this Writ Pet{tion is disposed of directing respondent Nos.3 and 4 to unblock the petitioner's Quarry ID bearing No.2O 1 lO2Ol25 on the condition of petitioner paying 100%o normal seigniorage fee in respect of transport/dispatch permits that are generated i.e., Rs.46,O5,323/- mentioned in the demand notice dated

28.12.2022 in two (02) instaltments within one (01) month from the date of receipt of a copy of this order. Miscellaneous petitions pending, if any, shall stand closed. There shall be no order as to costs. sD/-r. TIRUMALA DEVI i ASSISTANT REGISTRAR I I //TRUE COPY// l'.'t\-=- [J' CTION OFFICER

1. The Principal {;ecretary, lndustries and Commerce Department' Dr'B R nrnO"Jtui Secretariat, State of Telangana at Hyderabad

2. ihe Director of Mines and Geology, HYDERABAD. 5. il; D$;it'Director of Mines ani eeotogv' wARANGAL' Telangana stato 4. The Assistant Director of Mines and Geoipgy, KARIMNAGAR, Telangana State. To 7 - --1' Telangana at HYderabad IOUT1

5. Two CCs to GP FOR MINES AND GEOLOGY' High Court for the State of o o." ct i" sHri' clnr xnisHr'rn Advocate toPucl 7. Two CD CoPies SA BS HIGH COURT \ \ DATED:1210312025 ORDER WP.No.7686 of 2025 ".-/- t\1 z STA IE ,Y q c o 21 [i\t 2ffi t DE- r"" r DISPOSING OF THE W.P WITHOUT COSTS. @"r4W !'r -' / / I I