Supreme Court to Review Legislative Power on Mineral Rights Taxation on May 20
SC to hear on May 20 pleas on legislative power to tax mineral rights
Hindustan Times
Image: Hindustan Times
The Supreme Court of India will hear pleas regarding the legislative power to tax mineral rights on May 20, following a curative petition from the Centre. The court had previously ruled that states hold this power, and the Centre's petition is pending resolution.
- 01Supreme Court to hear legislative power pleas on May 20.
- 02Previous ruling confirmed states' authority to tax mineral rights.
- 03Centre's curative petition is pending before the court.
- 04The nine-judge bench ruled in favor of states in a majority verdict.
- 05Royalty and tax dues can be recovered by states from April 1, 2005.
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The Supreme Court of India will consider pleas related to the legislative power to tax mineral rights on May 20. This follows a curative petition filed by the Centre after the court dismissed review pleas of a July 25, 2024 ruling, which determined that states have the authority to tax mineral rights. The nine-judge bench ruled in an 8:1 majority that Parliament lacks the competence to impose such taxes under Entry 54 of List I of the Constitution. Solicitor General Tushar Mehta requested an adjournment until the curative petition is resolved, a request supported by some advocates. However, state representatives opposed this, highlighting the lengthy history of appeals, some dating back to 1999 and 2011. The Supreme Court had previously allowed mineral-rich states to recover dues worth thousands of crore of rupees from the Centre and mining companies, with staggered payments commencing from April 1, 2026.
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This ruling enables states to generate significant revenue from mineral rights taxation, which is crucial for their development and resource management.
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