Today, On 27th November, The Centre has filed a curative plea in the Supreme Court challenging the 9-judge ruling that upheld States’ authority to tax minerals. This move revives a major federal dispute over mineral royalty, pricing, and constitutional powers.
New Delhi: The Union Government approached the Supreme Court with a curative petition asking the Court to reconsider the earlier 9-judge bench ruling related to royalty on minerals.
This development comes at a time when several connected matters have been waiting for hearings for many months.
During the hearing, it was submitted to the Court that nearly “80 regular matters have been pending since July 2024 despite the reference being answered.”
The argument was that because these matters depend on the final legal clarity, they are unable to move forward.
Solicitor General Tushar Mehta highlighted the seriousness of the issue and told the bench that royalty sharing is not limited to one State but impacts the entire country.
He explained that,
“Royalty distribution affects every State, involves varying mineral prices and has global implications, touching the federal balance.”
The Centre therefore requested that the curative petition be taken up before the Court begins hearing other matters based on the old judgment.
Chief Justice of India Surya Kant shared that he is planning to begin the functioning of 9-judge benches in the new year.
He said he is “tentatively considering starting 9-judge benches from January 2026,”
But the Solicitor General requested that the curative petition should be heard first.
The CJI also informed the Bar about upcoming institutional changes and said,
“The initial phase of reforms will roll out from December 1.”
These reforms are expected to improve the functioning of the Court and reduce delays in major cases.
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Earlier, In July 2024, a nine-judge bench of the Supreme Court, with an 8:1 majority, ruled in Mineral Area Development Authority v. M/S Steel Authority of India that royalties do not qualify as taxes and affirmed that the authority to levy taxes on mineral rights lies with state legislatures.
Previously, In August 2024, the bench rejected the Union’s request to apply the ruling only prospectively, allowing states to collect overdue taxes, although not for any period prior to April 1, 2005.
Additionally, the Court permitted assessees to settle these dues through 12 installments over 12 years starting from April 1, 2026. In October 2024, the Court dismissed the Union’s request for a review of the judgment.