M/s. lmperial Granites Private Limited v. The State, of Telangana

Petition under Article 226 ol the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue writ, order or direction more particularly one in the nature of WRIT OF MANDAIUUS declaring the action of the 3rd respondent in Demand Notice No.1501/VlG-KNR/2013-14lODl1O4l1, dt.2O-04-2O23 and the action of the First Respondent in not disposing of the Revision Petition d1.17 -05-2023 ' questioning the Demand Notice and the action of the 2nd respondent in Proceedings to cancel the quarry lease granted in Proc.No.43262lR7-1197, dt.28-01-1998 in Sy.No.168, Odyaram Village, Gangadhara Mandal' Karimnagar District as arbitrary, illegal, unjust and unconstitutional and in violation. of Principles of Natural Justice without jurisdiction contrary to the Mines and r Minerals (Development Concession Rules, 1 966 lA NO: 1 OF 2025 and Regulation) Act, .1957 and T.S. Minor Mineral 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 pleased to suspend the proceedings of the 4th respondent in Demand Notice No.1501/VrG- KNR/2013- 14lODr1o4r1 . dr-20-04-2023, pending disposar of the writ petition. Counsel for the petitioner: SMT p.VlJAyA LAXMI, REp. FOR SMT N.SHOBA Counsel for the Respondents: AGp FOR MINES AND GEOLOG' The Court made the following: ORDER HON'BLE SRI JUSTICE K. LAKSHMAN WRIT PEf,ITIO N No.8243 of2o.25 ORDER: Heard. Smt. P. Vrjaya laxmi, learned counsel representing Smt. N. Shobha, learned counsel for the petitioner ald learned Assistant Government Pleader for Mines and Geologr. Perused the record.

2. 3'd respondent has issued a show cause notice dated 07.04 .2022 to the petitioner alleging that petitioner supplied granite to Swetha Agencies and there is difference of blocks etc. Petitioner sought information more particularty the proceedings referred in the said show cause notice' The same was not frrrnished to the petitioner herein. Therefore, he has hled a writ petition vide W.P.No.631 of 2023 to declare the action of 3'd respondent in not furnishing the documents relied upon in the said show cause notice dated 07'04 '2022 as illegal' Vide order dated O9.01.2023 this Court disposed of the said writ petition directing the respondent therein I NL,J !/.T,.No.8243 of 2025 2 including the 3.d respondent herein to furnish the relevant documents as per the representation of the petitioner \i.ithin one week from the date of receipt of copy of the order and the petitioner shall submit its explanation within two weeks from thereon or else the respondent.s a_re at liberty to pass appropriate orders/take appropriate action, in accordance with the law.

3. In cornplialce with the said order, 3.d respondent has furnished copies of the documents as referred in the show cause notice dated 07.O4.2022 to the pt_.titioner herein.

4. ThereaJter, 3.d respondent has issued fresh rlemand notice dated 20.04.2023 stating that he has re_verified the entire documents and came to a conclusion that petitioner has transported 148 Granite Blocks l.hrough M/s. Swetha Agencies, Karimnagar out of which (g9) Granite Blocks were transported in excess of the permitted qrrantity (difference quantity) mentioned on the ';:- KL,J w.P-No.8243 of2O25 3 Tralsit Form (way bill). The said difference quantity was worked out to 259.925 CBM as detailed in the Annexure to this Demand Notice. Thus, according to the 3'd respondent, petitioner has to pay an arnount of Rs.4,45,529/- towards Normal Seigniorage Fee, 5 tirnes penalty, Rs.22,11,7 14 l- towards penalt5r, totaling to an amount of Rs.26,57,2431' . Challenging the said demand notice, petitioner has frled a revision in terms of Rule 35- A of APMMC Rrrles, 1966 with l"t respondent on 1g.O5.2O23. The same was not disposed of by the 1"t respondent. In the meanwhile, 2"d respondent has issued show cause notice dated 22-02.2025 to the petitioner stating that 4tt' respondent reported that 3'd respondent had issued demand notice directing the petitioner to pay normal seigniorage fee and 5 times penalty for transportation of Granite Blocks in excess quantity through M/s. Swetha Agencies, Karimnagar' Despite the said demand notice, the petitioner failed to pay the mineral revenue dues which is a breach of Lease -.rt.rirat"tr.'& -E ..-;' KI,J w. r.No.8243 of2025 4 Covenant Nos.S & 8 of Form-G under TMMC Rules, 1966. Therefore, 2"d respondent directed the petitioner to submit explanation as to why action should not be taken for determ.ination of the quarry lease in respect of the subject property. 15 days times was granted to the petitioner 1.o submit explanation.

5. Petitioner filed the present writ petition tc, declare the action of the 3.d respondent in issuing demand notice dated 20.04.2023 and action of 1"t respondent in not disposing crf revision hled on 19.OS.2O2\ and questioning the said demand as illegal.

6. Learned counsel for the petitioner would contend that without disposing of the revision hled by the petitioner challenging the demand notice dated 2O.O4.2O23, 2"d respondent cannot issue show cause notice dated22.02.2025. The sarne is illegal.

7. Learned Assistant Government pleader for Mines and Geologr has produced G.O.Rt.No.60 dated i, I I KL,J W-P,No-8243 ol2025 5 I2.O3.2O25. Perusal of the same would reveal that Government has issued the said Government Order considering the recommendations of the Officers' Committee and after careful examination of the matter, withdraw the Circular Memo No.2397 |2/MR/2O19 dated

23.02.2019 issued by )na respondent and introduced the One Time Settlement (OTS) Scheme against the demand notices issues to quarry leases for minor minerals, stone crushers . and other agencies on certain terms and conditions specifically mentioned in the said G.O. The same is placed on record.

8. Learned counsel for the petitioner would contend that 1st respondent has to dispose of the revision hled by the petitioner cha,llenging the demand notice dated 2O.O4.2O23 and thereafter subject to result of the same, if 3'd respondent issues fresh notice, petitioner will avail benelrt under G.O.RI. No.60, dated 12.O3.2025. , / r.t't&; l I I (L,J W.l, No 8243 of 2025 6 (

9. Learned Assistant Government Pleader for Mines and Geologr on instructions would submit that 1.t respondent will dispose of the revision hled by the petitioner dated 19.05.2O23 strictly in accordance with 1aw.

10. In the light of the said submission, this writ petition is disposecl of directing the 1st respondent to dispose of the revision dated 19.05.2023 filed by the petitioner cha,llenging the demand notice dated 20.04.20213 strictly in accordance with law w'ithin (02) months from the date of receipt of copy of this order. Till then, the show cause notice dat.ed 22.O2.2025 shall not be giverr effect. Subject to result of the said revision, liberty is granted to

3.d respondent to initiate action, if any, against the petitioner herein. Liberty is also granted to the petitioner to avail the benefit under G.O.Rt.No.6O. dated t2.o3.2025 1 1. With the aforesaid direction, this rvrit petition is disposed of. There shall be no order as to costs. KL,J W.P.No.8243 of2025 7 \ To,

12. As a sequel, miscellaneous petitions, if any, pending in the Writ Petition shall stand closed. //TRUE COPY// SD/- P. GOWRI SHANKAR PUTY REGISTRAR ECTION OFFICER

1. The Principal secretary, lndustries and commerce (M.l) Dept, Secretariat, Hyderabad, State of Telangana.

2. The Director of Mines and Geology, Government of Telangana, Hyderabad 3.TheDeputyDirectorofMinesandGeology,Warangal(CampatKarimnagar)

4.TheAssistantDirectorofMinesandGeology,Karimnagar,Karimnagar District

5. One CC to SMT N.SHOBA, Advocate IOPUCI 6.TwoCCstoGPFoRM|NESANDGEoLoGY,HighCourtfortheStateof Telangana.at Hyderabad [OUT]

7. Two CD Copies BSR @k I t CC TODAY HIGH COURT DATED: 2010312025 ORDER WP.No.8243 o12025 r {:: ST4 f 4' 1 J C () 2 E I{AR ?ffi z f, ) \: 't. i_ , ]: i l7'1i(li\ 4' * o : I i I I i : I I I I I I I i I : i DISPOSING OF THE WRIT PETITION, WITHOUT COSTS 9b