M/S Neelima Granites Vs the State of Andhra Pradesh

M/s.Neelima Granites, Represented by its Proprietor Mr.Koona Ravi Kumar, S/o. late Krishna Rao, aged about 52 years, Penubarthi Village, Ponduru Mandal, Srikakulam District, Andhra Pradesh.

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...Petitioner

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AND

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The State of Andhra Pradesh, Represented by its Principal Secretary (Industries and Commerce Department), Secretariat Buildings at Velagapudi, Guntur District, Andhra Pradesh.

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The Director of Mines and Geology, Ibrahimpatnam, Vijayawada, Krishna District, Andhra Pradesh.

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The Deputy Director of Mines and Geology, Government of Andhra Pradesh, Srikakulam District, Andhra Pradesh.

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The Assistant Director of Mines and Geology, Srikakulam District, Andhra Pradesh.

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The Tahsildar, Meliaputti Mandal, Srikakulam District, Andhra Pradesh.

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...Respondents

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Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a writ or order or direction more particularly one in the nature of Writ of Mandamus declaring the action of the respondents in issuing auction notification No. 7/TKL/2022 Dated. 10.05.2022 as the

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initial bidding started from 11.05.2022 in the applied area of the petitioner (application Dated. 29.04.2004) for Quarry Lease for Colour Granite in Survey No.441 at Vasundhra Village, Meliaputti Mandal of Srikakulam District to an Extent of 04.994 Hectors under the guise of subsequent G.O.Ms.No.13 of industries and Commerce (Mines-Ill) Department dated 14.03.2022 and in G.O.Ms.No.14 of industries and Commerce (Mines-Ill) Department dated 14.03.2022 in consonance with G.O.Ms. No. 65 of industries and Commerce (Mines-Ill) Department dated 04.08.2021 for mandating the payment of Premium Amount (Ten Times Annual Dead Rent) before issuing the Letter of intent (LOI) for grant of leases in contrary to section 15(3) of the Mines and Minerals (Development and Regulations) Act, 1957 and further not issuing mining lease to the petitioner over the subject land despite of No Objection from the Revenue Department as highly illegal, arbitrary, unconstitutional also oppose to Articles 14, 19 (1) (g), of the Constitution of India and also oppose to the verdict of the Apex Court passed in Appeal (Civil) 800 of 2005 Dated. 12.12.2006 to direct the respondents to consider the application of the petitioner without giving effect to the subsequent G.O.Ms.No.13 of Industries and Commerce (Mines-Ill) Department dated 14.03.2022 and G.O.Ms.No.14 of Industries and Commerce (Mines-Ill) Department dated 14.03.2022 in consonance with G.O.Ms. No. 65 of industries and Commerce (Mines-Ill) Department dated 04.08.2021 for grant of mining lease for Colour Granite in Survey No.441 at Vasundhra Village, Meliaputti Mandal of Srikakulam District to an Extent of 04.994 Hectors by following the rules and procedure prevailed prior to the issuance of the above Government Orders Dated 14.03.2022, as well as on 04.08.2022 further stay of all further proceedings pursuant to the auction notification No. 7/TKL/2022 Dated 10.05.2022 for which the initial bidding started from 11.05.2022 in the applied area of the petitioner (application Dated. 29.04.2004) for Quarry Lease for Colour Granite in Survey No.441 at Vasundhra Village, Meliaputti Mandal of Srikakulam District to an Extent of 04.994 Hectors pending disposal of the lease application of the petitioner Dated 29.04.2004 and to pass

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IA NO: 1 OF 2022

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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 direct the respondents to consider the application of the petitioner without giving effect to the subsequent G.O.Ms.No.13 of industries and Commerce (Mines-Ill) Department dated 14.03.2022 and G.O.Ms.No.14 of Industries and Commerce (Mines-Ill) Department dated 14.03.2022 in consonance with G.O.Ms. No. 65 of industries and Commerce (Mines-Ill) Department dated 04.08.2021 for grant of mining lease for Colour Granite in Survey No.441 at Vasundhra Village,

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Meliaputti Mandal of Srikakulam District to an Extent of 04.994 Hectors by following the rules and procedure prevailed prior to the issuance of the above Government Orders Dated. 14.03.2022, as well as on 04.08.2022 pending disposal of the above writ petition and to pass

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IA NO: 2 OF 2022

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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 stay of all further proceedings pursuant to the auction notification No. 7/TKL/2022 Dated. 10.05.2022 for which the initial bidding started from 11.05.2022 in the applied area of the petitioner (application Dated. 29.04.2004) for Quarry Lease for Colour Granite in Survey No.441 at Vasundhra Village, Meliaputti Mandal of Srikakulam District to an Extent of 04.994 Hectors pending disposal of the lease application of the petitioner Dated. 29.04.2004 pending disposal the above "writ petition and pass

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IA NO: 1 OF 2023

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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 receive the counter copies on record by allowing the leave petition in the above writ petition and pass

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IA NO: 2 OF 2023

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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 vacate the interim stay orders dt.26.05.2022 on W.P.No.15178 of 2022 and issue orders for dismissal of the Writ Petition.

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Counsel for the Petitioner: V SAI KUMAR

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Counsel for the Respondents: GP FOR MINES AND GEOLOGY

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The Court made the following order:

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HON’BLE SRI JUSTICE MAHESWARA RAO KUNCHEAM

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WRIT PETITION No.15178 OF 2022

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ORDER:

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The instant writ petition has been filed under Article 226 of Constitution of India seeking the following main prayer:

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“to issue a writ or order or direction more particularly one in the nature of Writ of Mandamus declaring the action of the respondents in issuing auction notification No. 7/TKL/2022 Dated. 10.05.2022 as the initial bidding started from 11.05.2022 in the applied area of the petitioner (application Dated. 29.04.2004) for Quarry Lease for Colour Granite in Survey No.441 at Vasundhra Village, Meliaputti Mandal of Srikakulam District to an Extent of 04.994 Hectors under the guise of subsequent G.O.Ms.No.13 of industries and Commerce (Mines-Ill) Department dated 14.03.2022 and in G.O.Ms.No.14 of industries and Commerce (Mines-Ill) Department dated 14.03.2022 in consonance with G.O.Ms. No. 65 of industries and Commerce (Mines-Ill) Department dated 04.08.2021 for mandating the payment of Premium Amount (Ten Times Annual Dead Rent) before issuing the Letter of intent (LOI) for grant of leases in contrary to section 15(3) of the Mines and Minerals (Development and Regulations) Act, 1957 and further not issuing mining lease to the petitioner over the subject land despite of No Objection from the Revenue Department as highly illegal, arbitrary, unconstitutional also oppose to Articles 14, 19 (1) (g), of the Constitution of India and also oppose to the verdict of the

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Apex Court passed in Appeal (Civil) 800 of 2005 Dated. 12.12.2006 to direct the respondents to consider the application of the petitioner without giving effect to the subsequent G.O.Ms.No.13 of Industries and Commerce (Mines-Ill) Department dated 14.03.2022 and G.O.Ms.No.14 of Industries and Commerce (Mines-Ill) Department dated 14.03.2022 in consonance with G.O.Ms. No. 65 of industries and Commerce (Mines-Ill) Department dated 04.08.2021 for grant of mining lease for Colour Granite in Survey No.441 at Vasundhra Village, Meliaputti Mandal of Srikakulam District to an Extent of 04.994 Hectors by following the rules and procedure prevailed prior to the issuance of the above Government Orders Dated. 14.03.2022, as well as on 04.08.2022 further stay of all further proceedings pursuant to the auction notification No. 7/TKL/2022 Dated. 10.05.2022 for which the initial bidding started from 11.05.2022 in the applied area of the petitioner (application Dated. 29.04.2004) for Quarry Lease for Colour Granite in Survey No.441 at Vasundhra Village, Meliaputti Mandal of Srikakulam District to an Extent of 04.994 Hectors pending disposal of the lease application of the petitioner Dated. 29.04.2004 and to pass…..”

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Heard Sri V.Sai Kumar, learned counsel for the petitioner as

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well as the learned Assistant Government Pleader for Mines & Geology, appearing for the respondents.

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The sum and substance of the case of the writ petitioner is that the petitioner preferred an application seeking grant of quarry lease over an extent of 4.994 hectors in Sy.No.441 of Vasundhra Village, Meliaputti Mandal, Srikakulam District with all pre-requisites and the said application dated 29.04.2004 is pending consideration before the concerned authorities without any plausible reasons. According to the petitioner his application is prior to the date of issuance of G.O.Ms.No.65 of Industries and Commerce (Mines-III) Department dated 04.08.2021.

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It is also asserted that in terms of G.O.Ms.No.65, the case of

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the petitioner is liable to be considered, but the respondent authorities have not acted upon. Thus, the petitioner instituted the instant writ petition.

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Learned counsel for the petitioner further submits that at the time of admission, this Honourable Court directed the respondents not to finalize the tender pursuant to the impugned orders in the writ petition.

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Conversely, the learned Government Pleader for Mines & Geology submits that in view of subsequent events and policy

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decision initiated by the Government of Andhra Pradesh, G.O.Ms.No.100, Industries & Commerce (Mines-II) Department, dated 26.06.2025 came to be in force, as such, the very claim of the writ petitioner to consider their application under the light of G.O.Ms.No.65 of Industries and Commerce (Mines-III) Department dated 04.08.2021 become redundant. Hence, the very writ petition is liable to be dismissed.

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In the light of above rival submissions, it is apposite to mention that the Government of Andhra Pradesh claims that after noting the ground realities to promote sustainable, responsible mineral developments and also by giving priority to environmental preservation and community welfare and further maximizing the economic benefits of mineral wealth brought Andhra Pradesh Minor Mineral Policy, 2025 vide G.O.Ms.No.57 Industries & Commerce (Mines-II) Department dated 18.04.2025. Thereafter, the Government of Andhra Pradesh, by amending A.P. Minor Mineral Concession Rules, 1966 so as to implement the A.P. Minor Mineral Policy, 2025 effectively and comprehensively, notified G.O.Ms.No.100 Industries & Commerce (Mines-II) Department dated 26.06.2025.

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In the above said Government Orders dated 26.06.2025, Rule 12 (2-A) relates to the disposal of pending applications. For the sake

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of comprehensive view, it is relevant to extract Rule 12 (2-A) of G.O.Ms.No.100 Industries and Commerce (Mines-II) Department, dated 26.06.2025 as under:

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“12 (2-A) Disposal of Pending Applications

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i. Notwithstanding anything stated in these rules, all applications filed for grant of Quarry Lease for minor minerals listed in Schedule IV and are pending as on 13.03.2022 shall become eligible( irrespective of any ineligible orders issued after the introduction of Andhra Pradesh Minor Mineral Auction Rules 2022 subject to the area applied was free and not covered in the orders issued for auction/nomination/allotment.

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ii. In the event of any conflict between applications filed for grant of Quarry Lease by applicants before 13.03.2022 which are now deemed eligible, and applications filed by APMDC or for other national/ state projects, under the provisions of Rule 11(1)(i) of these rules and pending for grant, the competent authority shall give priority to and consider for grant of quarry lease the applications submitted under Rule 11(1)(i) of these rules.

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iii. The deemed eligible applications under sub rule (i) shall be considered by Director or Deputy Director concerned, as the case may be, for grant of Quarry Lease subject to the applicant having first priority as on 13.03.2022, based on date of filing and other eligibility criteria and payment of one

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time of Annual Dead Rent as a security amount within a period of three months to the Head of Account prescribed by the Government from the date of issue of these rules.

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Provided that the applications which are rejected or withdrawn before 13.03.2022 and the applications, for which the application fee andsecurity deposit not paid as per the prevailing rules on 13.03.2022 shall not be considered for grant.

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Provided further that all other applications not having the priority as per this rule shall be deemed ineligible.”

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At that juncture, counsel for the petitioner expressed that the petitioner may be permitted to prefer representation along with his earlier representation which was made prior to the prescribed date i.e. 13.03.2022 with all relevant documents.

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A plain reading of the above Government Orders crystal clear that, not withstanding anything in the Rules, all the applications preferred seeking quarry lease pending as on 13.03.2022 shall become eligible to be considered by the competent authorities, subject to terms and conditions as detailed above. Thus, in view of the above statutory realm, it is a bounded duty that rests upon the respondent authorities to dispose of the same.

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Considering the submissions made by the respective counsel

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and also keeping in view the aforesaid G.O.Ms.No.100 Industries & Commerce (Mines-II) Department dated 26.06.2025, the writ petition is disposed of, with the following directions:-

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The petitioner is hereby directed to file a fresh representation by duly enclosing their previous application dated 29.04.2004 with all relevant documents to the competent authority;

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In that event, the competent authority is hereby directed to consider the case of the petitioner in accordance with law by giving due opportunity to the petitioner strictly in terms of G.O.Ms.No.100, Industries & Commerce (Mines-II) Department, dated 26.06.2025, as early as possible.

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There shall be no order as to costs. Miscellaneous petitions

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pending if any, shall stand closed.

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______________________________ MAHESWARA RAO KUNCHEAM, J

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Date:09.03.2026 Rns

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THE HON’BLE SRI JUSTICE MAHESWARA RAO KUNCHEAM