Disposed

Babu Lal Jajoo v. State of Rajasthan through Chief Secretary

NGT7 Jan 2025IA No. 132/2024 in Original Application No. 87/2024

Case brief

AI extract

What is this about?

The National Green Tribunal Bench, Bhopal disposed of an interim application seeking audit of the District Mineral Fund by a separate independent agency. Relying on the Rajasthan District Mineral Foundation Trust Rules, 2016, the court held the application non-maintainable as existing rules mandate audit by qualified auditors under Accountant General's supervision. The court directed Respondent St

What did the court decide?

Application dismissed; States directed to furnish details of fund collection, utilization, and clarify permissible expenditure within four weeks.

Babu Lal Jajoo vs State of Rajasthan through Chief… — Environment and Pollution | NGT (2025)

¶1

Item No. 06

¶2

BEFORE THE NATIONAL GREEN TRIBUNAL CENTRAL ZONE BENCH, BHOPAL

¶3

(Through Video Conferencing)

¶4

Original Application No. 87/2024(CZ) (I.A.No.132/2024)

Babu Lal Jajoo

Applicant(s)

Vs.

State of Rajasthan & Ors. Respondent(s)

¶9

Date of Hearing: 07.01.2025

¶10

CORAM: HON’BLE MR. JUSTICE SHEO KUMAR SINGH, JUDICIAL MEMBER HON'BLE DR. AFROZ AHMAD, EXPERT MEMBER

¶11

For Applicant(s): Ms. Diksha Chaturvedi, Adv. For Respondent(s) : Mr. Rohit Sharma, Adv. Mr. Shoeb Hasan Khan, Adv.

¶12

ORDER

¶13

I.A. No. 132/2024.

¶14

Issue raised in this application is the Management of District Mineral Fund which is governed by the District Mineral Foundation Trust and the contention of the applicant is that in view of the sensitiveness of the matter, the fund should be audited by a separate independent agency and the applicant has given the list of four persons/agencies for audit. 2. Learned Counsel for the respondent has filed the reply and submitted that the Rajasthan District Mineral Foundation Trust Rules, 2016 have been enacted by the State Government in exercise of powers conferred by section 9B, sub-section (4) of Section 15 of MMDR Act, 1957. The District Mineral Foundation Trust is constituted for each district as per Rule 5 of the Rules, 2016. All decisions by the trustee is taken in the meeting of the Governing Council and the decisions taken by the majority of trustees/members of governing council is considered as final. The management of the trust is vested in the governing council.

¶15

¶16

O.A. No. 87/2024(CZ)

¶17

Babu Lal Jajoo Vs State of Rajasthan & Ors.

¶18

The day to day management of the trust is managed by managing committee specified under rule 10 of the Rules, 2016. The powers and functions of the Governing Council is provided under Rule 8 of the Rules. It is clear that all decisions regarding use of the trust fund and expenditure, approval of projects, approval of annual action plan and budget of the trust, laying down policy framework for the functioning of the trust and review its working, distributing of monetary benefits to persons or families affected by mining related operations in the district etc. are taken by Governing Council in its regular meetings with majority.

¶19

The scope of the DMF Trust is clearly specified under Rule 15 with utilisation of trust fund, in high priority areas and other priority areas among the affected area/people. There are provisions to maintain proper books of accounts and record as well as auditing by separate qualified auditor/agencies at least on completion of year for transparency in management of fund.

¶20

In compliance with the requirements, a detailed audit of the accounts of most District Mineral Foundation (DMF) district trusts, from their inception in the financial year 2016-17 to 2022-23, has been conducted periodically by Chartered Accountants who are notified and qualified auditors approved by the Accountant General. Additionally, a comprehensive audit of the same period was carried out by the Accountant General.

¶21

The Accountant General also prepared a Factual Statement Report covering the financial years 2018-19 to 2022-23. Upon review of this report, responses to various paragraphs were sought from subordinate offices. These responses were subsequently consolidated at the Directorate level, and a comprehensive compliance report was prepared.

¶22

¶23

O.A. No. 87/2024(CZ)

¶24

Babu Lal Jajoo Vs State of Rajasthan & Ors.

¶25

This compliance report was then submitted to the Accountant General through the Government.

¶26

The notification issued by the Mines (GR-II) Department Notification, Jaipur dated 31.05.2016 provides the meaning of auditor as Chartered Accountant appointed by the trust and include Accountant General of the State. There is a provision of Trustees in Section 5 and the management and function of the Governing Council are enumerated in the following provisions –

¶27

“Rajasthan District Mineral Foundation Trust Rules, 2016”-

¶28

Section 6 - Management of the Trust.

¶29

The management of the trust shall vest in a Governing Council which shall consist of all trustees including nominated trustees of the trust. However, the day to day management of the trust shall be managed by a Managing Committee, as specified in Rule 10. The Government may however decide to alter the composition of the Managing Committee at any time. The powers and functions of the Governing Council and of the Managing Committee shall be as contained in these rules.

¶30

Section 8 - Powers and Functions of the Governing

¶31

Council – The Governing Council Shall,-

¶32

(i) Laying down the broad policy framework for the functioning of the trust and review it’s working from time to time;

¶33

(ii) Drawing up and approving of annual action plan and the annual budget for the trust. The annual action plan must be prepared and approved by the Governing Council at least one month before commencement of the year. The annual action plan shall contain the list of schemes and projects with the tentative provisions thereof; Provided that if for any reason whatsoever, the Governing Council does not prepare and accord Approval to the annual plan and the budget within the

¶34

¶35

O.A. No. 87/2024(CZ)

¶36

Babu Lal Jajoo Vs State of Rajasthan & Ors.

¶37

specified time, the Chairperson shall get prepared the annual action plan and budget of the trust and approve the same. The budget so prepared shall be deemed to have been duly prepared and approved by the Governing Council; Provided also that while preparing the annual plan for the next financial year, the sum total of the past commitment and liabilities spilling over shall be assessed. To maintain financial discipline and timely completion of project, the sum total of the past liabilities and commitments and the new scheme being proposed should not in any case exceed three times the expected inflows for the next financial years.

¶38

(iii) Approving such other expenditure, in furtherance of the objects of the trust from the available trust fund in such manner as may be specified by the Government.

¶39

(iv) Approving of the recommendation of the Managing Committee. Approving the annual report and audited accounts of the trust within sixty days of the close of the previous year.

¶40

(v) Approving the annual report and audited accounts of the trust within sixty days of the close of the previous year.

¶41

(vi) Distributing monetary benefits to persons or families affected by mining related operations in the district.

¶42

Section 10 - Managing Committee

¶43

The affairs of the trust shall be managed by a Managing Committee consisting of:-

¶44

S No.	Name	Designation of the Managing Committee
1	2	3
i.	District Magistrate	_Chairperson _
ii.	Mining Engineer / Assistant Mining Engineer posted at district headquarter or in the district and in case more than one Mining Engineer is posted at district headquarter, Mining Engineer-I. Other Mining Engineer / Assistant Mining Engineer posted at district headquarter or in the district as head of the office shall also	Member Secretary

¶45

¶46

O.A. No. 87/2024(CZ)

¶47

Babu Lal Jajoo Vs State of Rajasthan & Ors.

¶48

	be member.
iii.	Deputy Conservator of Forest	Member
iv.	_Treasury Officer _	Member
v.	Executive Engineer of Public Works Department	Member
vi.	Medical Officer nominated by the Chief Medical & Health _Officer _	Member
vii.	Representative of Rajasthan State Pollution Control Board	Member
viii.	_District Social Welfare Officer _	Member
2 (viii-a)	Chief Executive Officer, Zila Parishad	Member
2 (viii-b)	Deputy Director, Agriculture	Member
2 (viii-c)	District Education Officer (Secondary)	Member
2 (viii-d)	District Education Officer (Elementary)	Member
2 (viii-e)	Superintending Engineer, Water Resources Department	Member
2 (viii-f)	Representative of the Tribal Area Development Department	Member
2 (viii-g)	Superintending Engineer, Public Health and Engineering Department	Member
2 (viii-h)	District Labour Welfare Officer	_Member _
2 (viii-i)	Deputy Director, Integrated Child Development Scheme	Member
ix.	Account personnel posted in Mining Engineer / Assistant Mining Engineer office nominated by the Government	Member
x.	Any other officer / person nominated by the Government	Member

¶49

Section 12 - Powers and functions of the Managing

¶50

Committee - The Managing Committee shall.;

¶51

(i) Exercise due diligence in carrying out its duties for protecting the interests of the trust.

¶52

(ii) Ensure timely collection of contribution fund from the concerned mineral concession holders, in accordance with the provisions of the Act and rules;

¶53

(iii) Prepare the master plan / vision document for the activities of the trust;

¶54

(iv) Assist in the preparation of the annual plan and the annual budget of the trust along with the proposed schemes and projects;

¶55

¶56

O.A. No. 87/2024(CZ)

¶57

Babu Lal Jajoo Vs State of Rajasthan & Ors.

¶58

(v) Supervise and ensure the execution of the annual plan and the approved schemes and projects;

¶59

(vi) Accord sanction to the projects, release and disburse the trust fund for the purpose.

¶60

(vii) Operate the trust fund in a diligent manner and to open one bank account in the name of the trust and operate such account;

¶61

(viii) Monitor the progress of the utilization of trust funds;

¶62

(ix) Place the audited accounts along with an annual report before the Governing Council for its approval within sixty days of closure of financial year;

¶63

(x) Do all other things which are necessary for smooth functioning and management of the trust; and

¶64

(xi) Lay down the procedure for the functioning of the trust; Provided that prior to implementation of such procedure, same has to be approved by the State Government.

¶65

Section 18 - Account and audits

¶66

i. The Managing Committee shall maintain and/or cause to be maintained proper books of accounts, documents and records with respect to the trust fund to give a true and fair picture of the affairs of the trust. Books of accounts shall be maintained as per provisions of General Finance & Accounting rules (GF &AR) or any special rules made by the Government in this behalf. The account of the trust shall be audited at least on completion of year by a qualified auditor. The auditors of the trust shall be appointed by the trustees from the list of approved auditors notified by the Accountant General of the State in the meeting of the Governing Council, on such terms and conditions as decided by the trustee. The auditors may be removed and replaced by the trustee with the consultation of the Accountant General of Rajasthan.

¶67

ii. Notwithstanding anything contained in sub-rule (1), the Government may appoint an auditor or auditor or may

¶68

¶69

O.A. No. 87/2024(CZ)

¶70

Babu Lal Jajoo Vs State of Rajasthan & Ors.

¶71

request the Accountant General for audit of a particular year or period on such terms as the Government may so decide.

¶72

iii. The trust shall forward the approved budget and annual plan along with schemes and projects for the next financial year to the¹ [office of the district magistrate] and the State Government for publication on their respective websites.

¶73

iv. The trust shall prepare a quarterly progress report in physical and financial terms in respect of the approved schemes and projects within forty five days of the close of the quarter and forward it to the² [ office of the district magistrate] immediately thereafter for publication on their respective websites.

¶74

v. The trust shall forward the approved annual report and the approved audit report immediately after their approval by the Governing Council within sixty days of closure of financial year to the³ [office of the district magistrate ] and to the State Government along with audit report for publication on their respective websites.

¶75

vi. The Annual Report of each Foundation shall be laid before the State Legislative Assembly.”

¶76

The perusal of the rule makes it clear that the auditors are under the control of the Accountant General and the specific provision has been made for audit and account of the Trust Fund and if there is a special provision for audit and account under supervision of the Accountant General and the annual report of each Foundation is to be laid before the State Legislative Assembly thus, no separate provision is required to be adopted in contravention of the rules and provisions contained in Section 18.

¶77

1 Substituted by Rajasthan Gazette Extraordinary dated 22/02/2019

¶78

2 Published in Rajasthan Gazette Extraordinary dated 01/06/2018

¶79

3 Published in Rajasthan Gazette Extraordinary dated 22/02/2019

¶80

¶81

O.A. No. 87/2024(CZ)

¶82

Babu Lal Jajoo Vs State of Rajasthan & Ors.

¶83

Accordingly, the application for appointment of separate accountant is not maintainable as per rules. The application IA No. 132/2024 is disposed of accordingly.

¶84

Learned counsel for the State of M.P. and Chhattisgarh have sought some time to file the reply. The perusal of the reply submitted by the State of Rajasthan discloses that the mining committee as constituted under Rule 10 is required to function in accordance with the Rules 12, 13 and 15 of the Rule subject to approval by the competent authorities. Details of the fund collected and its utilisation have not been submitted by the respondent/State of Rajasthan. Accordingly, we direct the detail of the fund collected and its utilisation may be furnished by the State of Madhya Pradesh, Rajasthan and Chhattisgarh, in light of the rule quoted above.

¶85

Learned counsel for the applicant has further submitted that the account should not be utilised for the infrastructure of building, payment of salary to the employee. The respondent and state may clarify on that point. The detail report be filed within four weeks.

¶86

List it on 03^rd March, 2025.

¶87

Sheo Kumar Singh, JM

¶88

Dr. Afroz Ahmad, EM

¶89

07^th January, 2025 O.A No. 87/2024(CZ) PN

¶90

¶91

O.A. No. 87/2024(CZ)

¶92

Babu Lal Jajoo Vs State of Rajasthan & Ors.

Babu Lal Jajoo v. State of Rajasthan through Chief Secretary

Case brief

What is this about?

What did the court decide?

Babu Lal Jajoo v. State of Rajasthan through Chief Secretary

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

Coram

Case details

Similar cases

Akhilesh Kumar vs District Collector

Shri Shanlang W Kharbangar vs Meghalaya Pollution Control Board

Nishant Bhargav vs

Mahesh Chandra Saxena vs NCT of Delhi

Kulal Munindar Narendar Goud vs Union of India

Kulal Munindar Narendar Goud vs Union of India

Rathinasamy vs District Collector

Tribunal on Its Own Motion Suo Motu Based on News Item in the New Indian Express News Paper Chennai E Edition Dt 3OTH June 2023 Road Being Laid Inside Marshland in Perumbakkam vs Member Secretary State Wetland Authority Tamil Nadu

Shri Omprakash Somani vs 1. State of Rajasthan through Chief Secretary

Shri Omprakash Somani vs 1. State of Rajasthan through Chief Secretary

Shri Omprakash Somani vs 1. State of Rajasthan through Chief Secretary

Nitin Saxena vs Urband Development and Housing Department

Misc Application in disposed of cases No. 20/2024 in Original Application No. 81/2024 of Nitin Singhvi vs State of Chattisgarh

Bhopal Citizens Forum through Its Member Shri Arun Gurtoo vs State of Mp