The Supreme Court has allowed Odisha to request the Orissa High Court Chief Justice to assign all mining dues recovery cases to a special bench for quick disposal. The Court said public revenue is at stake and asked the High Court to decide the matters by March 31, 2026.
![[BREAKING] "States can Levy, Renew Demand for Tax on Mineral Rights Retrospectively From April 1, 2005": CJI Led 9-Judge Bench](https://i0.wp.com/lawchakra.in/wp-content/uploads/2024/07/image-36-2.png?resize=447%2C367&ssl=1)
Justice Nagarathna warned about the potential collapse of the federal system if states are allowed to tax minerals, citing disruption of power balance and governance structure. She argued that royalties should be considered taxes, highlighting risks of competition, increased costs, and negative economic impact. This could lead to decreased mining activity and strained foreign reserves.
The Supreme Court’s 9-judge Bench analyzed the MMDR Act’s impact on states’ ability to tax mineral rights. Chief Justice Chandrachud questioned the potential impact of a tax on mineral-bearing land on mineral development. The debate centered on the interplay between Entry 23 of List I and Entry 49 of List II, addressing the complex nature of royalty under the Act.
