The Supreme Court of India.
Credit: PTI File Photo
Hyderabad: Stating that the Centre is seeking revision of the Supreme Court's judgement that the right to levy royalty and taxes on mineral extraction and mineral bearing lands will deprive the states of an important source of revenue, having federal implications, former government of India secretary, EAS Sarma, appealed to the states to press their point of view before the top court. He observed this subject has long-term implications for the federal structure of centre-state relations.
“Considering the long-term implications of the Revision Petition filed by the Centre, the states may have to engage a competent team of legal counsel to present their point of view. The Centre has not hesitated to extract huge dividends from the mining CPSEs when it comes to its argument that the judgement burdens the CPSEs. It is also important to bear in mind that many private mining companies are profiteering at the cost of the public exchequer. Since this subject has long-term implications for the federal structure of Centre-States relations, I appeal to the States to press their point of view before the apex court,” Sarma said in a letter to chief ministers of different states.
He observed that the Apex court's judgement reinforces the federal structure envisaged in the Constitution and provides an important source of revenue for the states.
“It appears that the Centre, instead of falling in line with the above landmark judgement to uphold the role of the States in mineral development and regulation, has filed a Revision Petition before the apex court seeking the latter to restore the Centre's authority to levy royalty and taxes on minerals. The justification for it cited by the Centre is that it would affect the finances of mining companies, both private and CPSEs. According to the Centre, it imposes a financial burden on mining companies to the tune of Rs 1,50,000 Crores by way of arrears and an additional recurring annual financial burden,” he added.