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Patna High Court

Manjeet ChawlaversusThe State of Bihar

Decided
Disposal
DISPOSED

Holding

The Court held that the State must conduct a fresh replenishment study to determine the actual sand availability and adjust the royalty accordingly, quashing the order that demanded royalty on the originally represented quantity.

Summary

The petitioner, the successful bidder for the Bhojpur Sone‑35 sand ghat, claimed that the State of Bihar had misrepresented the available sand quantity and had granted overlapping short‑term permits to third parties, depleting the resource. The petitioner sought reduction of royalty, a fresh sand‑availability survey, and setting aside of a letter directing environmental clearance. The Court examined the tender notice, the District Survey Report, the short‑term permits, and scientific replenishment studies showing a drastic reduction in sand volume. It held that the State must base royalty and mining permissions on a current, scientifically‑validated replenishment study and that the earlier order demanding full royalty was arbitrary. Accordingly, the Court quashed the impugned order, directed a fresh study, and ordered the royalty to be determined thereafter.

Issues considered

  • The validity of the State's representation of sand quantity in the tender notice.
  • Whether overlapping short‑term permits granted after the auction invalidate the petitioner's entitlement to the advertised sand volume.
  • Whether the petitioner must pay royalty on the originally represented quantity despite reduced actual availability.
  • The necessity of a fresh replenishment study before fixing royalty and granting environmental clearance.

Legislation cited

  • Bihar Mineral (Concession, Prevention of Illegal Mining, Transportation & Storage) Rules, 2019 — s. Rule 26(3)
  • Enforcement and Monitoring Guidelines for Sand Mining, 2020
  • Mines and Minerals (Development and Regulation) Act, 1957 — s. Section 10-B, Section 10-BA, Section 11, Section 4, Section 4-A
  • Sustainable Sand Mining Management Guidelines, 2016

Subjects

  • sand mining
  • royalty
  • replenishment study
  • environmental clearance
  • public trust doctrine
  • sustainable mining
  • overlapping leases
  • auction
  • district survey report
  • mineral lease

Judgment

          IN THE HIGH COURT OF JUDICATURE AT PATNA
                    Civil Writ Jurisdiction Case No.17523 of 2023
     ======================================================
     Manjeet Chawla S/o Late Amarjeet Singh Chawla, R/o G201, Preet Vihar,
     New Delhi - 110092. Through Power of Attorney Holder Ramesh Prasad
     Singh, male, aged about 55 years approximately, Son of Sh. Ram Yash Singh,
     Resident of Village - Sahejani, P.O. - Hasan Bazar, P.S.- Piro, District -
     Bhojpur, State- Bihar Pin – 802204.

                                                                   ... ... Petitioner
                                        Versus

1.   The State of Bihar through the Principal Secretary, Mines and Geology
     Department, Government of Bihar, Patna.
2.   The Director, Mines and Geology Department, Government of Bihar, Patna.
3.   The Managing Director, Bihar State Mining Corporation Ltd., Bihar, Patna.
4.   The Authorised Officer, Bihar State Mining Corporation Ltd., Bihar , Patna
5.   The District Magistrate-cum-Collector, Bhojpur, Ara, Bihar.
6.   The Assistant Director, Mines, Ara, Bhojpur.
7.   The District Mining Officer, Bhojpur, Ara, Bihar.
8.   The Mineral Development Officer, Bhojpur, Ara.
9.   State Environment Impact Assessment Agency, Patna (SEIAA) through its
     Member Secretary., Bihar, Patna.
10. State Level Expert Appraisal Committee (SEAC), Bihar through its Member
    Secretary, Bihar, Patna-800023.
11. Rana Uday Pratap Singh, S/o- Late Rana Ranvijay Pratap Singh Add.- Jai
    Prakash Nagar, Vishunpur Nala, Dist.- Dhanbad, Jharkhand, Pin- 826001.
12. Paropkar Consultant Pvt. Ltd., Auth.- Bablu Kumar, Add.- Bag Majhuwan,
    Dist.- Bhojpur, Pin- 802163.
13. Keshav Construction, Berar tola, P.O.- Barah Ranitalab, Dist.- Patna-
    801112.

                                               ... ... Respondents
     ======================================================
     Appearance :
     For the Petitioner     :      Mr. Yashraj Singh Deora, Sr. Advocate
                                   Mr. Sriram Krishna, Advocate
                                   Mr. Devesh Shankar Singh, Advocate
                                   Mr. Amarjeet, Advocate
                                   Mr. Prabhat Kumar Singh, Advocate
                                   Mr. Shashank Shekhar Kunwar, Advocate
     For the State          :      Mr. Ajay, G.A.-5
                                   Mr. Akash Raj, A.C. to G.A.-5
     For the Mines Department :    Mr. Naresh Dikshit, Spl. P.P.
                                   Mr. Brij Bihari Tiwari, Advocate
                                   Ms. Shruti Singh, Advocate
                                   Ms. Kalpana, Advocate
     For the SEIAA          :      Mr. Kumar Ravish, Advocate
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       For the BSMCL           :                  Mr. Ranjeet Kumar Pandey, Advocate
       For the Private Respondent:                Mr. Madhav Krishna, Advocate
                                                  Mr. Suraj Samdarshi, Advocate
                                                  Mr. Avinash Kumar, Advocate
       ======================================================
       CORAM: HONOURABLE MR. JUSTICE SANDEEP KUMAR
                           C.A.V. JUDGMENT
                                     Date : 30-01-2026

                         The present writ petition has been filed on behalf of

         the successful bidder in the auction of Bhojpur Sone 35 Ghat

         (65 Hectares). The central grievance of the petitioner is that the

         respondent State while issuing the tender notice had asserted

         that the aforesaid sand ghat had 11,70,000 CuM of sand

         available annually for sand mining, however the quantity of

         sand mineral, as asserted by the respondent-State, was not

         actually available since, according to the petitioner, after the

         issuance of the Letter of Intent on 28.10.2022 in favour of the

         instant petitioner, the respondent - Bihar State Mining

         Corporation Ltd. (BSMCL) had granted short term permits in

         favour of third parties resulting in extraction of sand from the

         areas that overlapped with the settled areas of the petitioner

         causing depletion in the sand availability. The petitioner is also

         aggrieved by the action of the respondent-State in not

         conducting a proper replenishment study in accordance with law

         and raising demand from the petitioner to pay the full royalty of

         Rs.19,30,50,000/- per annum towards the full represented

         quantity even though, according to the petitioner, the asserted
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         quantity of sand does not exist.

                         2.      In this backdrop, the petitioner by way of the

         present writ petition has prayed for the following reliefs:-

                              “I. To issue an appropriate Writ(s), Order(s) or
                                 Direction(s) to the respondent authorities to reduce
                                 the total amount of royalty payable by the petitioner,
                                 because in the meantime, after the issuance of Letter
                                 of Intent dated 28.10.2022 as contained in memo no.
                                 4394 to the petitioner under the signatures of
                                 Mineral    Development      Officer,     Bhojpur,   large
                                 quantity of sand has already been extracted by third
                                 party agencies on the basis of grant of short term
                                 permits by respondent nos. 3 and 4 herein out of the
                                 Sand Ghat area settled with the petitioner, due to
                                 overlapping;
                              II. To issue an appropriate Writ(s), Order(s) or
                                 Direction(s) to the respondent authorities to conduct
                                 a fresh survey to estimate the mineral actually
                                 available and charge royalty based on the same;
                              III. To issue an appropriate Writ(s), Order(s) or
                                 Direction(s)     setting   aside   the     letter   dated
                                 08.09.2023 as contained in memo no.3837 issued
                                 under the signatures of the Collector, Bhojpur, Ara;
                              IV. To pass any other appropriate Writ(s), Order(s) or
                                 Direction(s) that this Hon’ble Court may deem fit on
                                 the facts and circumstances of the case.”

                         3.      Subsequently,         in    compliance         of     the

         directions of the coordinate Bench of this Court vide order dated

         04.02.2025, the petitioner had filed a representation before the

         Respondent no.2 which came to be decided by the aforesaid
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         respondent authority vide order dated 07.04.2025. Further,

         during the pendency of this writ petition, the respondent

         authorities have granted environmental clearance to the

         petitioner for the entire represented quantity of sand being

         11,70,000/- CuM. The petitioner, thereafter, had preferred

         Interlocutory Applications for amending the prayer portion of

         the writ petition, which was allowed by the Coordinate Bench of

         this Court vide order dated 19.08.2025 and following additional

         prayers were made:-

                          “V.    To issue an appropriate writ(s), order(s) or
                                 direction(s) to the respondent authorities for
                                 reconsidering     /   amending   the   Environmental
                                 Clearance for the proposed sand mining activity at
                                 the Sone 35 Ghat granted to the petitioner on
                                 19.12.2023 (Annexure P-19 of I.A. No. 01 of 2024)
                                 i.e., subsequent to the filing of the connected writ
                                 petition and providing for the annual extraction
                                 quantity based on the true quantity of sand available
                                 on site.
                          VI.    Issue a writ, order or direction in the nature of
                                 certiorari or any similar writ, order or direction to
                                 quash the order dated 07.04.2025 passed by the
                                 Respondent No.02 as being arbitrary and being
                                 contrary to law.”

                         4.      The brief facts relevant for the present

         purpose is that the respondent State had published a tender

         notice on 13.09.2022 for grant of mining licence for the sand

         ghats through auction in various districts of the State including
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         for the district of Bhojpur. The present lis revolves around the

         Bhojpur Sone 35 Ghat situated at mauza Kharaon Kalan

         spanning over an area of 65 Hectares with an estimated quantity

         of 11,70,000 CuM of sand available annually for mining.

         Pursuant to the auction notice, the process of auction was

         conducted on 17.10.2022 and the petitioner emerged as the

         highest bidder for the aforesaid Bhojpur Sone 35 sand ghat.

         Thereafter the petitioner made the requisite payments and a

         Letter of Intent (LoI) dated 28.10.2022 was issued to the

         petitioner for the settlement of the aforementioned ghat. Mining

         plan was submitted by the petitioner on 08.11.2022, which came

         to be approved vide letter dated 24.11.2022 by the Director of

         Mines.

                         5.      Subsequent thereto, the petitioner availed the

         services of an Environmental Advisor, and the process of

         obtaining environment clearance was set in motion. The

         application for grant of environment clearance along with draft

         Environmental Impact Assessment (EIA) were submitted by the

         petitioner. On 09.12.2022 the authorized signatory of the

         petitioner submitted the project report, pre-feasibility report and

         other necessary documents for the proposed project of sand ghat

         in order to obtain the terms of reference (ToR) for the
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         Environmental Clearance. The aforesaid ToR was issued to the

         petitioner on 11.01.2023. The petitioner submitted the draft EIA

         and a request for arranging the public hearing was made which

         was conducted on 21.06.2023.

                         6.      Pertinently,     the   ToR,   under   additional

         specific condition no. 02, required the petitioner to submit the

         details of the overlapping areas with the previously allotted

         mining lease or already working or worked out mining lease.

         The petitioner, therefore, wrote a letter dated 30.06.2023

         (Annexure-P/11) and also a reminder letter dated 21.07.2023

         addressed to the District Mining Officer seeking the requisite

         details which was responded to by the District Mining Officer

         vide his letter dated 03.08.2023 (Annexure P/13) stating therein

         that 21.84 Hectares of cluster No. 08 situated at Kharaon Kalan

         sand ghat and 07 Hectares of cluster No.09 at Lodipur sand

         ghat were overlapping with the Bhojpur Sone-35 sand ghat and

         further that a total of 1,98,062.72 MT of sand had already been

         extracted/mined. A map was also appended with the aforesaid

         letter dated 03.08.2023. The aforesaid letter dated 03.08.2023 is

         reproduced herein-below:-
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                         7.      It is the case of the petitioner that while the

         Bihar State Mining Corporation Ltd., had granted short term

         mining permits for the very same mineral, i.e., sand, to certain

         third parties for the sand ghats situated at Mauza Kharaon

         Kalan, Bhojpur on the Sone River, the Mining Department,

         Government of Bihar granted a five year mining lease to the

         petitioner for the area which overlapped with the area under the

         short term permit. In other words, according to the petitioner, a

         large part of the area over which the petitioner was granted the

         mining licence stood overlapped with the prior short term
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         mining permits of the third party granted by the BMSCL.

         Further, it is the case of the petitioner that even after completion

         of the auction process, the respondent State continued to grant

         short-term licence to third parties over overlapping areas.

                         8.      It is further the case of the petitioner that

         while the petitioner was successful in the auction process for the

         aforesaid Bhojpur Sone 35 sand ghat which was for a period of

         five years, the petitioner was under a bona fide belief that the

         representation made by the respondent-State in the tender notice

         regarding the availability of quantity of sand was lawful. It is

         stated on behalf of the petitioner that at that stage there was no

         indication that short term permits had already been granted or

         would be granted to third parties over overlapping areas while

         the petitioner, being the successful bidder, was obtaining

         necessary permissions to commence the process of mining.

                         9.      It is also the case of the petitioner that vide

         letter dated 08.09.2023, the Collector, Bhojpur, Ara directed the

         petitioner to submit the EIA before the SEIAA, Bihar in order to

         obtain environmental clearance within a period of three days

         from the date of receipt of the letter.

                         10.     The learned Senior Counsel for the petitioner

         submits that the petitioner was shocked to learn that there was a
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         major overlap of area and that the mining was undertaken even

         after the area was auctioned off in favour of the petitioner and

         the petitioner was amidst the process of obtaining the necessary

         clearances. It is submitted by the learned Senior Counsel that

         the peculiar situation had put the petitioner in a quandary as on

         the one hand, having learnt that the quantity, as had been

         auctioned, even as per the own admission of the respondent-

         State, stands significantly reduced on account of continued

         mining/extraction by third parties and therefore, the grant of

         environmental clearance in favour of the petitioner with

         11,70,000 CuM of sand would bind the petitioner to mine the

         aforesaid quantity. Secondly, according to the petitioner, if

         proceeded, the petitioner would have to pay the entire royalty

         irrespective of the fact that the actions of the respondent-State

         would constitute fraud and unjust enrichment.

                         11.     It is submitted on behalf of the petitioner that

         a study based on satellite imagery was conducted by an expert

         hired by the petitioner, which according to the petitioner,

         revealed the extent of sand available in the area. It is submitted

         by the petitioner that while in the year 2018 there was almost

         54.64 Hectares out of 65 Hectares reflecting sand, and the

         balance was under water, the aforesaid area stood reduced to
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         42.86 Hectares in 2019 and further reduced to 31.44 Hectares in

         2022. Furthermore, by the year 2023 the area stood at only

         11.76 Hectares and the balance was underwater and even out of

         the aforesaid 11.76 Hectares of sand only 9.61 Hectares was not

         overlapped.

                         12.     The learned Senior Counsel has next

         submitted that since mining activities continued, it was

         incumbent upon the respondent State to undertake a fresh

         replenishment study immediately after complete cessation of

         mining activities by third parties in order to reflect the true

         availability of sand in the ghats since the SEIAA can only grant

         environmental licences based on and only to the extent of actual

         mineral availability and replenished. It is categorically

         submitted by the learned Senior Counsel that petitioner had

         requested the SEIAA to defer the grant of environmental

         clearance in order to undertake fresh replenishment study to

         ascertain true availability of sand in the ghat. It is further the

         categorical submission of the learned Senior Counsel for the

         petitioner that grant of environmental clearance permitting the

         petitioner to mine 11,70,000 CuM of sand without confirming if

         such quantity of sand is actually even available or not,

         particularly in light of the own admission by the respondent
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         State regarding extraction of sand to the tune of 1,98,062MT

         would be totally unlawful and against the settled principles of

         environmental law.

                         13.     The learned Senior Counsel has further

         argued that the respondent authorities are asserting that

         irrespective of the quantity of sand available in the ghat area,

         the royalty would have to be paid for the entire represented

         quantity, i.e., 11,70,000 CuM which equals to Rs.19,30,50,000/-

         per annum. The learned Senior Counsel has argued that the

         reliance placed by the respondent authorities on clause-21(iv) of

         the tender document to contend that total royalty must be paid is

         totally misplaced since that would be manifestly arbitrary. It is

         vehemently argued on behalf of the petitioner that the State

         authorities making a representation regarding a quantity and

         then actively undertaking steps to reduce the quantity by

         granting short term permits would clearly amount them to

         taking advantage of their own wrong.

                         14.     The learned Senior counsel for the petitioner

         has argued that even though the petitioner cannot extract more

         quantities of sand than what is actually available after being

         reduced as a result of the actions of the respondents themselves

         by permitting third parties to extract sand under short term
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         permits, yet the petitioner is being tied down to pay the same

         annual settlement amount even when admittedly the quantities

         available for extraction are lesser and have reduced than what

         was originally represented.

                         15.     The next limb of argument advanced by the

         learned Senior Counsel is that the scientific studies have clearly

         established that the sand bar area has reduced from 54.64

         Hectares in 2018 to 11.76 Hectares in 2023. Drawing strength

         from the scientific study conducted by the Central Mine

         Planning and Design Institute Limited, Ranchi, the learned

         Senior Counsel for the petitioner submits that pre and post

         monsoon data of 2024 has confirmed that replenishment

         occurred only on 20.96 Hectares of sand ghat area to the extent

         of only 1,82,291 CuM of sand, as opposed to what the

         respondent State had asserted in the tender notice as 11,70,000

         CuM of sand annually. The relevant findings of the

         replenishment study conducted by the Central Mine Planning &

         Design Institute Limited in January, 2025 for the Bhojpur Son-

         35 ghat reads as under:-

                                 “FOLLOWING FINDINGS EMERGE ON A
                                 COMPARISON OF THE DATA COLLECTED
                                 AND STUDIES UNDERTAKEN PRE AND POST
                                 MONSOON.
                                 a) The replenishment which has taken place is more
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                                 along the banks of the river and over area where the
                                 sand bar/ dry area existed pre monsoon.
                                 b) Majority of the lease area continues to be
                                 inundated under water ie. flowing river and there
                                 has not been any major difference in this area post
                                 monsoon. This reflects that there may not be
                                 sufficient replenishment over the said region
                                 where water continues to flow as otherwise sand
                                 bars would have been generated by now. This is
                                 specifically keeping in view of the admitted facts
                                 from mine operator that no mining has been
                                 undertaken in the said area post-2023. Generally, if
                                 the area had seen replenishment the same would
                                 have become evident with enlargement of the
                                 existing sand bar and diversion or narrowing of the
                                 river due to creation of sand bar.
                                 c) The rate of replenishment, therefore, can only be
                                 considered for the dry area i.e. 20.11 Ha and the
                                 same finding cannot be extended to the areas
                                 inundated under water.
                                 d) The sand bank / dry area pre-monsoon was 20.96
                                 Ha. having an estimated reserve of 2,26,419 cum.
                                 sand, if mining was undertaken to average depth of
                                 1.08   meters    as   thereafter     water   would   be
                                 intercepted. No mining is permissible below the
                                 water table and accordingly sand could have been
                                 mined to an average depth 1.08 meters over the dry
                                 area only.
                                 e) In terms of data collected, the dry area post
                                 monsoon is 20.11 Ha, wherein there has been a
                                 slight decrease in the dry area from 20.96 Ha to
                                 20.11 Ha. As per the model, there has been a
                                 replenishment of approximate 182291.70 cum.
                                 over the now dry area i.c. 20.11 Ha.
                                 f) Accordingly, the approximate reserves as
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                                 available in the dry area would be (226419 cum.
                                 pre    monsoon        reserve   +   182291.70   cum.
                                 Replenishment post monsoon) = 408710.70 cum.”


                         16.     Therefore, it is argued that the insistence of

         the State that the petitioner must extract the auction quantity

         equal to 11,70,000 CuM annually and pay the royalty

         accordingly on the same would be in total breach of

         environmental regulations. It is categorically pointed by the

         learned Senior Counsel that the balance area is inundated under

         water and the law clearly prohibits mining below the water

         level.

                         17.     It is the further submission of learned Senior

         Counsel for the petitioner that no scientific data has been

         produced by the respondent-State to bring on record that the

         replenishment and annual availability of sand is equal to the

         quantity represented during the auction. The respondent State

         while rejecting the representation preferred by the petitioner

         vide order dated 07.04.2025 had made a bald averment that

         allegedly the entire quantity of sand is available in the subject

         sand ghat which would not suffice in view of scientific studies

         and therefor, contrary to the records. It is submitted that the

         aforesaid order dated 07.04.2025 is evidently without any

         scientific particulars and without taking into consideration
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         relevant factors like total dry area, water level in the said dry

         area, replenishment, if any etc. and therefore, cannot be a

         substitute to the scientific studies suggesting significant

         reduction in the replenishment and availability of sand.

                         18.     Adverting to Rule 26 (3) of the Bihar

         Mineral       (Concession,        Prevention   of   Illegal   Mining,

         Transportation & Storage) Rules, 2019, the learned Senior

         Counsel has submitted that the mining can only be undertaken

         upto to three meters or before breaching the water level,

         whichever is first, however, from study conducted by the

         CMPDIL, it is evident that the water level is available at an

         average depth of 1.08 meters only. Therefore, it is the

         submission of learned Senior Counsel for the petitioner that the

         order dated 07.04.2025 more specifically in paragraph no.3 (iv)

         is clearly contrary to the settled principles of law.

                         19.     It is submitted that in terms of the EIA

         notification, the State while identifying the site has to ensure

         that only 60% of the mineable reserves is put to auction. In

         furtherance of the same, the State has auctioned the mining

         rights over 65 Hectares, stating that it would have 11,70,000

         CuM of sand. In contrast to the same to overcome the fact that

         majority of the lease area, as auctioned, is inundated under
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         water and therefore, no mining can take place over the area so

         covered, the Respondents are seeking to contend that the

         petitioner herein, from the 65 Hectares put to auction can carry

         out mining only in 60% of the area i.e., 39 Hectares, it is

         therefore, the submission of learned Senior Counsel that there is

         no such rule or restriction. Moreover, the mining plan approved

         by the respondent-State itself permits mining over the entire

         lease area of 65 Hectares.

                         20.     It is the next submission of the learned

         counsel for the petitioner that the auction of the lease, in the

         present case, as conducted is admittedly for river sand and in

         light of the judgment of the Hon’ble Supreme Court in the case

         of Deepak Kumar v. State of Haryana reported as (2012) 4

         SCC 629, the Ministry of Environment, Forests and Climate

         Change has enacted the Sustainable Sand Mining Management

         Guidelines, 2016 (SSMMG, 2016) and Enforcement and

         Monitoring Guidelines for Sand Mining, 2020 (EMGSM, 2020)

         and also amended the EIA notification to include the

         requirement of compliance of guidelines and therefore, the State

         is under a legal duty to accurately provide the quantity of the

         minerals being auctioned, as the bid by the interested party is

         based on the quantity being auctioned.
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                         21.     It is submitted that the action of the State as

         impugned in the present proceedings on the face of it is

         manifestly arbitrary and unreasonable, inasmuch as, the State

         made a specific representation that 11,70,000 CuM of sand

         would be available per annum against which a reserve price of

         Rs 17.55 crore per annum was fixed at the rate of royalty of Rs

         150 per CuM. The petitioner based on the said representation

         submitted a bid of Rs.19.3050 crores i.e. Rs 165 per CuM.

         However, admittedly in terms of scientifically collected data and

         replenishment study by CMPDIL, only 2,26,419 CuM of sand

         was available pre monsoon even after mining by third parties

         stood suspended since 2023 and after monsoon, a replenishment

         of only 1,82,291 CuM of sand was found deposited. Therefore,

         it is the categorical submission of learned Senior Counsel for the

         petitioner that as of today only 4,08,710 CuM of sand is

         available in the area identified as the lease area. Despite the

         same, the State is demanding that the petitioner pay the entire

         royalty for 11,70,000 CuM of sand, which apart from being

         manifestly arbitrary also leads to unjust enrichment.

                         22.     Furthermore, the extraction must not exceed

         60% of the total mineral potential, with replenishment being

         subject to annual assessment. From the perusal of the guidelines
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         and notifications, it is evident that it is the duty cast on the State

         to arrive at the quantity that can be mined through a scientific

         means and based on actual surveys. It is submitted that mining

         is to be restricted to replenished quantity, in order to safeguard

         the environment. However, according to the learned Senior

         Counsel, the State is being driven by only economic

         considerations when it otherwise has a duty to safeguard the

         environment and permit mining only in accordance with law.

                         23.       In support of this submission, learned Senior

         Counsel for the petitioner has relied upon a decision of the

         Allahabad High Court in the case of M/s Anandeshwar Agro

         Foods (P) Ltd. v. State of U.P., reported as 2025 SCC OnLine

         All 1536 wherein the Allahabad High Court has emphasized the

         need of replenishment study, after considering the 2016 and

         2020 guidelines and held as under:-

                            “29.     As   stated   above,   pre   and   post-monsoon
                                   replenishment studies are mandated in the EMGSM,
                                   2020 guidelines and the same are an extension of
                                   the survey, demarcation and evaluation of the area
                                   or areas declared under Rule 23. The purpose of the
                                   survey and the evaluation that are requisites under
                                   the provisions of Chapters 2 and 4 of the Rules,
                                   2021 are to inform the prospective bidders at the
                                   auction/tender mining leases for minor minerals
                                   (sand and morrum in this case) so that the
                                   prospective bidders are well aware as to the
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                                 quantity and quality of the minerals available in the
                                 declared area before they place their bids. The State
                                 Government       cannot   put   the   onus   on   the
                                 prospective bidders by stating that it is the bidders
                                 who should undertake an inspection of the area
                                 and satisfy themselves as to the quality and
                                 quantity of the minerals available at the area
                                 proposed to be leased, when the Rules, 2021 and
                                 the EMGSM, 2020 Guidelines require the State
                                 Government to undertake that exercise.
                            30. The guidelines contained in the SSMMG, 2016 and in
                                 the EMGSM, 2020 have been framed taking into
                                 account the judgments of the Supreme Court, the
                                 High Courts and the NGT. These guidelines appear
                                 to have been issued by the Central Government in
                                 purported exercise of power to issue directions
                                 under Section 20-A of the Mines and Minerals
                                 (Development and Regulation) Act, 1957 (Act,
                                 1957). The importance of the survey/evaluation by
                                 the State authorities in the interest of the ecology
                                 and environment in respect of the areas proposed to
                                 be leased under the Rules, 2021 cannot be over
                                 emphasised. It is the only available and prescribed
                                 manner by which the State Government can make a
                                 realistic assessment as to the extent to which mining
                                 can be permitted in the leased area after taking into
                                 account the fragility of the ecology, the flora and
                                 fauna and the rivers, as well as the impact on the
                                 environment.
                                 Xxx
                            42. Thus, the annual audit envisaged under the
                                 aforesaid EMGSM, 2020 guidelines and the
                                 replenishment study, both pre-monsoon and post-
                                 monsoon, assume great importance keeping in view
                                 the environment and ecology of the mining area.
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                                 Mining within or near riverbeds has a direct impact
                                 on the stream's physical characteristics, such as
                                 channel    geometry,   bed   elevation,   substratum
                                 composition and stability, in-stream roughness of
                                 the bed, flow velocity, discharge capacity, sediment
                                 transport capacity, turbidity, temperature, etc.
                                 Alteration or modification of the above attributes
                                 may cause an impact on the ecological equilibrium
                                 of the riverine regime, disturbance in channel
                                 configuration and flowpaths. This may also cause
                                 an adverse impact on in-stream biota and riparian
                                 habitats. It is assumed that the riparian habitat
                                 disturbance is minimum if the replenishment is equal
                                 to excavation for a given stretch. Therefore,
                                 the Emgsm, 2020 guidelines recommends that it is
                                 imperative to have a study of replenishment of
                                 material during the defined period to minimise the
                                 adverse impact arising out of sand mining in a given
                                 river stretch. The Emgsm, 2020 guidelines provides
                                 that the excavation will be limited to estimated
                                 replenishment estimated with consideration of other
                                 regulatory provisions.”

                         24.     It is, therefore, submitted by the learned

         Senior Counsel for the petitioner that the contention of the State

         that under the tender notice condition no 42(xix), the bidder had

         to satisfy itself about the availability of the mineral, is of no

         avail since the requirement under the law is that the estimation

         being provided by the State is to be based on current scientific

         studies and the State cannot shift that burden on the bidders as

         has been held by the Allahabad High Court in the case of M/s
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         Anandeshwar Agro Foods Pvt. Ltd. (supra). Further,             the

         condition being sought to be relied on is impossible to fulfill, if

         read in the manner as is being done by the respondent-State

         since the availability of sand cannot be based only on ocular

         consideration and would require detailed studies.

                         25.     The next submission of learned Senior

         Counsel for the petitioner is that the SEIAA and the SEAC

         being a statutory body was bound to apply its mind before

         granting the environmental clearance to the petitioner. The

         SEAC minutes dated 05.10.2023 itself records that the project

         proponent (petitioner) had informed the Committee that enough

         replenishment of sand has not happened after the closure of the

         previous mining, however, despite this fact being brought to the

         notice, the SEIAA had imposed a contradictory condition, on

         one hand, the SEIAA had granted the environmental clearance

         on 19.12.2023 for the production of the full quantity i.e. 11.70

         lakhs CuM of sand but on the other hand, simultaneously

         imposed a contradictory condition not to mine beyond the

         replenished quantity of sand.

                         26.     The learned Senior Counsel has drawn

         strength from a decision of the Hon’ble Supreme Court in the

         case of Territory of J & K vs. Raja Muzaffar Bhat reported as
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         2025 SCC OnLine SC 1789 wherein the Hon’ble Supreme

         Court after considering the 2016 and 2020 guidelines has held

         that in absence of replenishment study, no mining can be

         permitted in the river bed since only based on a replenishment

         study, one can know the extent to which the sustainable mining

         can be undertaken.

                         27.     Lastly, it has been submitted by learned

         Senior Counsel for the petitioner that even in contractual matter,

         the State is bound to act fairly, reasonably and the conduct is

         subject to judicial scrutiny on the touchstone of Article 14. In

         support of the aforesaid submission, he has placed reliance on

         the decision rendered in the cases of ABL International Ltd. vs.

         Export Credit Guarantee Corporation of India Ltd. reported as

         (2004) 3 SCC 553 and Indian Oil Corporation Limited vs.

         Nilofer Siddiqui reported as (2015) 15 SCC 125.

                         28.     Per contra, the learned counsel for the

         respondent nos.3 to 8 has, at the outset, submitted that the

         present writ petition is premised on the fact that during the

         period prior to the commencement of the mining by the

         petitioner, sand was extracted under short-term arrangements

         and therefore the petitioner is entitled to reduction of royalty or

         reassessment of mineral quantity. It is the submission of the
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         learned counsel for the respondent nos. 3 to 8, that said premise

         is factually incorrect and legally untenable.

                         29.     It is the categorical submission that the

         estimated quantity of sand with respect to the Bhojpur Sone-35

         sand ghat was duly disclosed in the notice inviting tender dated

         13.09.2022 which was based on the District Survey Report

         (DSR) prepared by the Sub-Divisional Committee and duly

         approved by the SEIAA on 07.04.2022. Further, in the aforesaid

         DSR, the total reserve of sand was assessed at 31,59,000 MT

         and therefore in accordance with the Enforcement & Monitoring

         Guidelines for Sand Mining, 2020 (EMGSM-2020), only 60%

         of the said total reserve i.e., 18,95,400 MT per annum was

         permitted to be mined.

                         30.     The learned counsel for respondent Nos. 3 to

         8 has next submitted that the petitioner had participated in the

         auction with the full knowledge of the estimated quantity and

         having accepted the terms in the NIT, he can not turn around to

         seek reassessment at a later stage. Pertinently, the petitioner had

         never raised any objection at the stage of preparation or

         approval of the Mining Plan or before the SEIAA while

         applying for the environmental clearance or even during the

         public hearing. Therefore, now having consciously participated
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         in the auction process and accepted the disclosed estimation, the

         petitioner is now estopped from seeking a post-bid reassessment

         or reduction of royalty.

                         31.     The learned counsel for the petitioner has

         next submitted that the replenishment study confirms sufficient

         availability. It is emphasized that the replenishment study of the

         Sone River was conducted through CMPDIL, Ranchi and the

         aforesaid study revealed 112% replenishment of sand after

         monsoon, therefore conclusively establishing that river Sone is a

         living river and annual replenishment being a natural and

         continuous process, the contention of the petitioner that prior

         mining would exhaust the mineral availability is untenable. It is

         further the submission that the non-availability of sand is

         therefore scientifically incorrect and contrary to record.

                         32.     Adverting to the decision of the Hon’ble

         Supreme Court in the case of State of Bihar vs. Pawan Kumar

         & Ors. (Civil Appeal Nos. 3661-3662 of 2020) reported as

         (2022) 2 SCC 348, the learned counsel for the respondent nos. 3

         to 8 has submitted that the allegations of grant of short-term

         mining permits to third parties does not stand, since the

         aforesaid permits were granted in compliance of the directions

         given by the Hon’ble Supreme Court in Pawan Kumar (supra),
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         the relevant portion of which reads as under:-

                          “15. We further find that when the 2020 Guidelines as
                                 well as the notification issued by MoEF and CC of
                                 2016 itself provide for constitution of Sub-Divisional
                                 Committees comprising of the officers of the State
                                 Government         from   various   Departments     for
                                 identification of the potential sites for mining, there
                                 would be no necessity of the DSRs being prepared
                                 through private consultants as directed by the
                                 Tribunal in the impugned order [Pawan Kumar v
                                 State of Bihar, 2020 SCC OnLine NGT 2848]. The
                                 Sub-Divisional Committee consists of various
                                 officers    from Revenue Department, Irrigation
                                 Department, State Pollution Control Board, Forest
                                 Department and Geology and Mining Department of
                                 the State Government. They are better equipped to
                                 visit the sites and prepare the draft DSR for the
                                 district concerned. Apart from that, preparation of
                                 DSR through private consultants would also
                                 unnecessarily burden the public exchequer. We are
                                 therefore of the view that the direction in that regard
                                 issued by the Tribunal requires to be modified. We
                                 are further of the considered view that until the
                                 DSRs are finalised and granted approval by SEAC
                                 and Seiaa, it is appropriate that certain necessary
                                 arrangements are permitted so that the State can
                                 continue with legal mining activities. This apart
                                 from preventing illegal mining activities, would also
                                 ensure that the public exchequer is not deprived of
                                 its share in legalised mining.
                          16.    We therefore find it appropriate to substitute the
                                 directions issued by the Tribunal vide judgment and
                                 order dated 14-10-2020 [Pawan Kumar v. State of
                                 Bihar, 2020 SCC OnLine NGT 2848], with the
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                                  following directions:
                          16.1. The exercise of preparation of DSR for the purpose
                                  of mining in the State of Bihar in all the districts
                                  shall be undertaken afresh. The draft DSRs shall be
                                  prepared     by   the      Sub-Divisional   Committees
                                  consisting   of      the   Sub-Divisional   Magistrate,
                                  Officers from Irrigation Department, State Pollution
                                  Control Board or Committee, Forest Department,
                                  Geological or Mining Officer. The same shall be
                                  prepared by undertaking site visits and also by using
                                  modern technology. The said draft DSRs shall be
                                  prepared within a period of 6 weeks from the date of
                                  this order. After the draft DSRs are prepared, the
                                  District Magistrate of the district concerned shall
                                  forward the same for examination and evaluation by
                                  SEAC. The same shall be examined by SEAC within
                                  a period of 6 weeks and its report shall be
                                  forwarded to SEIAA within the aforesaid period of 6
                                  weeks from the receipt of it. SEIAA will thereafter
                                  consider the grant of approval to such DSRs within
                                  a period of 6 weeks from the receipt thereon.
                          16.2. Needless to state that while preparing DSRs and the
                                  appraisal thereof by SEAC and SEIAA, it should be
                                  ensured that a strict adherence to the procedure and
                                  parameters laid down in the policy of January 2020
                                  should be followed.
                          16.3. Until further orders, we permit the State
                                  Government to carry on mining activities through
                                  Bihar State Mining Corporation for which it may
                                  employ the services of the contractors. However,
                                  while doing so, the State Government shall ensure
                                  that all environmental concerns are taken care of
                                  and no damage is caused to the environment.
                               17. List the matter after 20 weeks.”
                         33.      Therefore, it is the submission of the
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         answering respondents that the short-term mining arrangements,

         as referred by the instant petitioner, were thus expressly

         authorized by the Hon’ble Supreme Court and were undertaken

         in public interest intended to ensure continuity of lawful mining

         pending statutory approvals. It is, therefore, argued by the

         answering respondents that any extraction carried out in

         pursuance of the aforesaid directions cannot be termed illegal,

         arbitrary or excessive nor can it create any vested right in favour

         of a subsequent bidder to claim refund or reassessment.

                         34.     It is also the submission advanced by the

         learned counsel for the answering respondents that due to

         closure of the Bhojpur Sone sand ghat no. 35 for the last three

         years has resulted in substantial revenue loss to the Government

         in the form of settlement (bandobasti) amount.

                         35.     The next limb of the argument advanced by

         the learned counsel is that the contention of the highest bidder

         that after auction conducted in their favour in the year 2022,

         sand mining was carried out for a period of only two to three

         months and it has been alleged that the portion of land where

         mining was undertaken, through falling partially within the

         allotted sand ghat area, contained an inadequate quantity of sand

         is totally baseless and devoid of merit. It is submitted that it is
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         well-established fact that every year during the four months of

         the monsoon season when the sand mining operations remain

         completely suspended, sufficient natural replenishment of sand

         takes place in the sand ghats. Such replenishment is

         scientifically assessed every year by the CMPDIL and as per the

         annual reports submitted by the CMPDIL to the State

         Government,           the   replenishment     rate   is   assessed   at

         approximately at 112% every year. Therefore it is submitted

         that, during the last three years, the quantity of sand replenished

         is several times higher than the alleged depletion claimed by the

         petitioner. It is therefore vehemently argued that the shortage of

         sand is entirely untenable and contrary to records.

                         36.     It is next submitted that in the district of

         Bhojpur, approximately 40 sand ghats are operational, out of

         which 10 sand ghats are currently being operated in their third

         year and 20 of them are in their second year of operation.

         Therefore it is submitted by the answering respondents that this

         clearly demonstrates that sand mining was carried out in the first

         year, replenishment occurred in the second year, followed by

         mining again within the same demarcated area and thereafter

         replenishment took place once more before mining in the third

         year. This cycle of mining and replenishment is continuous and
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         well established. Hence, it is argued that the contention raised

         by the petitioner stands completely contradicted by prevailing

         ground realities.

                         37.     It is, therefore, argued that owing to the said

         act and inaction on the part of the petitioner the State has

         suffered revenue loss exceeding three times the annual

         settlement amount per year.

                         38.     Adverting to the clause 42(xix) of the tender

         document, the learned counsel for the answering respondents

         has submitted that the aforesaid clause unequivocally stipulates

         that the bidder must satisfy himself regarding the availability of

         the sand, transportation routes and all factual and technical

         aspects and no claim beyond the terms of the tender shall be

         entertained. It is also argued by the learned counsel for the

         answering respondents that there is no statutory provision for

         the reduction, refund or reassessment of royalty. The statutory

         scheme treats royalty as the consideration payable for grant of

         mineral concession and governed strictly by the Rules, tender

         conditions and executed agreement. It is therefore further argued

         by the learned counsel for the answering respondents that in

         absence of any enabling statutory provision, the relief sought by

         the petitioner is impermissible.
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                         39.     Lastly, the learned counsel for the answering

         respondents has argued that the petitioner had raised no

         grievance at any relevant statutory stage and approached this

         Court after the liability to pay the royalty was crystallized. It has

         been argued by the learned counsel for the answering

         respondents that the present petitioner seeks to convert a purely

         contractual and statutory obligation into an equitable claim

         which is wholly impermissible in writ jurisdiction.

                         40.     I have considered the submissions of the

         parties and perused the materials available on record.

                         41.     In the present case, the availability of sand in

         the Bhojpur Sone 35 sand ghat, settled in favour of the highest

         bidder – petitioner, by way of e-auction, was put to question on

         the ground that short term mining permits were issued to third

         parties on overlapping areas as that of the petitioner, which

         according to the petitioner, resulted in severe depletion in

         availability     of    sand.    During        the   course   of   obtaining

         environmental clearance, the petitioner came to know the extent

         to which such overlapping exists and the extraction of the sand

         which has taken place. Thereafter, it appears that the petitioner

         took upon himself and conducted a Satellite Imagery Analysis to

         further ascertain the extent of overlap and the availability of
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         sand in the aforesaid sand ghat. The petitioner, in support of his

         assertion, draws strength from a replenishment studies

         conducted by the CMPDIL, Ranchi, in September, 2024 and

         January, 2025 wherein there has been a significant reduction in

         the replenishment of the sand. Based on the aforesaid, the

         petitioner contends that the demand for royalty to the extent of

         original/entire represented amount of 11,70,000 CuM of sand

         cannot be recovered from him.

                            42.   On the other hand the contention is rebutted

         by the answering respondents by stating that the river in

         question      is     a   living    river      having   continuous   annual

         replenishment rate of 112% and therefore, a post bid

         reassessment is impressible.

                            43.   It is settled law that the mining activities

         cannot be permitted beyond the annual replenishment rate since

         that would endanger the environment and if the geological

         processes that naturally replenish the availability of sand cannot

         match the rate at which the mining occurs then over the period

         of time aggressive and continued mining activity would result in

         long term environmental damage. Therefore, sustainable

         development is sine qua non to strike a balance between

         developmental activities and the conservation of environment.
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                         44.      The National Green Tribunal in the case of

         Raj Kumar vs. State of U.P. (O.A. No.140/2021), Pramod vs.

         State of U.P. (Appeal No.23/2021) and Junaid Ayubi & Ors. vs.

         State of Haryana & Ors. reported as 2024 SCC OnLIne NGT

         445 has held that replenishment studies is a prerequisite

         mandatory condition for sand mining projects.

                         45.      The seriousness of the adverse impact on the

         ecology of a river owing to excessive river bed mining was

         underscored by the Hon’ble Supreme Court in the case of

         Deepak Kumar & Ors. vs. State of Haryana & Ors. reported as

         (2012) 4 SCC 629. Relevant paragraphs of the aforesaid

         decision read as under:-

                               “8. We have no materials before us to come to the
                                  conclusion that the removal of minor minerals,
                                  boulders, gravel, sand quarries, etc. covered by the
                                  auction notices dated       3-6-2011 and 8-8-2011, in
                                  the places notified therein and also in the riverbeds
                                  of   Yamuna,         Ghaggar,     Tangri,   Markanda,
                                  Krishnavati River basin, Dohan River basin, etc.
                                  would not cause environmental degradation or
                                  threat   to   the     biodiversity,   destroy   riverine
                                  vegetation, cause erosion, pollute water sources,
                                  etc. Sand mining on either side of the rivers,
                                  upstream and instream, is one of the causes for
                                  environmental degradation and also a threat to the
                                  biodiversity. Over the years, India's rivers and
                                  riparian ecology have been badly affected by the
                                  alarming rate of unrestricted sand mining which
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                                 damage the ecosystem of rivers and the safety of
                                 bridges, weakening of riverbeds, destruction of
                                 natural habitats of organisms living on the
                                 riverbeds, affects fish breeding and migration, spells
                                 disaster for the conservation of many bird species,
                                 increases saline water in the rivers, etc.
                             9. Extraction of alluvial material from within or near a
                                 streambed has a direct impact on the stream's
                                 physical       habitat        characteristics.      These
                                 characteristics include bed elevation, substrate
                                 composition and stability, instream roughness
                                 elements,     depth,     velocity,   turbidity,   sediment
                                 transport, stream discharge and temperature.
                                 Altering these habitat characteristics can have
                                 deleterious impacts on both instream biota and the
                                 associated riparian habitat. The demand for sand
                                 continues to increase day by day as building and
                                 construction of new infrastructures and expansion of
                                 existing ones is continuous thereby placing immense
                                 pressure on the supply of the sand resource and
                                 hence mining activities are going on legally and
                                 illegally without any restrictions. Lack of proper
                                 planning and sand management cause disturbance
                                 of marine ecosystem and also upset the ability of
                                 natural marine processes to replenish the sand.
                             10. We are expressing our deep concern since we are
                                 faced with a situation where the auction notices
                                 dated 3-6-2011 and 8-8-2011 have permitted
                                 quarrying, mining and removal of sand from
                                 instream and upstream of several rivers, which may
                                 have serious environmental impact on ephemeral,
                                 seasonal and perennial rivers and riverbeds and
                                 sand extraction may have an adverse effect on
                                 biodiversity as well. Further, it may also lead to bed
                                 degradation and sedimentation having a negative
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                                 effect on the aquatic life. The rivers mentioned in
                                 the auction notices are on the foothills of the fragile
                                 Shivalik Hills. Shivalik Hills are the source of rivers
                                 like   Ghaggar,       Tangri,    Markanda,       etc.    River
                                 Ghaggar is a seasonal river which rises up in the
                                 outer Himalayas between Yamuna and Satluj and
                                 enters Haryana near Pinjore, District Panchkula,
                                 which passes through Ambala and Hissar and
                                 reaches Bikaner in Rajasthan. River Markanda is
                                 also a seasonal river like Ghaggar, which also
                                 originates from the lower Shivalik Hills and enters
                                 Haryana near Ambala. During monsoon, this stream
                                 swells up into a raging torrent, notorious for its
                                 devastating power, as also, River Yamuna.
                             11. We find that it is without conducting any study on
                                 the possible environmental impact on/in the
                                 riverbeds and elsewhere the auction notices have
                                 been issued. We are of the considered view that
                                 when we are faced with a situation where extraction
                                 of alluvial material within or near a riverbed has an
                                 impact     on      the      river's    physical         habitat
                                 characteristics, like river stability, flood risk,
                                 environmental degradation, loss of habitat, decline
                                 in biodiversity, it is not an answer to say that the
                                 extraction is in blocks of less than 5 ha, separated
                                 by 1 km, because their collective impact may be
                                 significant, hence the necessity of a proper
                                 environmental assessment plan.
                                 xxxx
                              25. Quarrying of river sand, it is true, is an important
                                 economic activity in the country with river sand
                                 forming     a     crucial       raw   material     for     the
                                 infrastructural       development        and      for      the
                                 construction industry but excessive instream sand
                                 and gravel mining causes the degradation of
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                                 rivers. Instream mining lowers the stream bottom
                                 of rivers which may lead to bank erosion.
                                 Depletion of sand in the streambed and along
                                 coastal areas causes the deepening of rivers which
                                 may result in destruction of aquatic and riparian
                                 habitats as well. Extraction of alluvial material as
                                 already mentioned from within or near a
                                 streambed has a direct impact on the stream's
                                 physical habitat characteristics.
                               26. We are of the considered view that it is highly
                                 necessary to have an effective framework of
                                 mining plan which will take care of all
                                 environmental issues and also evolve a long-term
                                 rational and sustainable use of natural resource
                                 base and also the bio-assessment protocol. Sand
                                 mining, it may be noted, may have an adverse
                                 effect on biodiversity as loss of habitat caused by
                                 sand mining will affect various species, flora and
                                 fauna and it may also destabilise the soil structure
                                 of river banks and often leaves isolated islands. We
                                 find that, taking note of those technical, scientific
                                 and environmental matters, MoEF, Government of
                                 India, issued various recommendations in March
                                 2010 followed by the Model Rules, 2010 framed by
                                 the Ministry of Mines which have to be given effect
                                 to, inculcating the spirit of Article 48-A and Article
                                 51-A(g) read with Article 21 of the Constitution.”
                                 (emphasis supplied)

                         46.     It would be apposite to refer to the guidelines

         issued by the Ministry of Environment, Forest and Climate

         Change, Sand Mining guidelines of 2016 and 2020, which

         prohibit mining beyond the rate of replenishment.
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                         47.     The provisions under Clause-4, 5 and 6.1 of

         the Enforcement and Mining Guidelines for Sand Mining, 2020

         has been quoted by the National Green Tribunal in the case of

         Junaid Ayubi v. State of Haryana reported as 2024 SCC

         OnLine NGT 445, which read as under:-

                            “18. In the present case, EC has been issued on
                                 29.01.2022 and on the date of issuance of the EC,
                                 the guidelines of 2020 had come in force. The
                                 relevant considerations which are to be kept in mind
                                 for sand/gravel mining while approving the mining
                                 plan are reflected in clause 4.3 of the guidelines of
                                 2020 and in terms of clause 4.3(b), the distance
                                 between sites for sand and gravel mining depends
                                 on the replenishment rate of the river. Clause 4.3
                                 reads as under:—

                                         “Following considerations shall be kept in
                                         mind     for   sand/gravel     mining         while
                                         approving mining plan:

                                     a) Parts of the river reach that experience
                                         deposition     or   aggradation       shall     be
                                         identified. The Leaseholder/Environmental
                                         Clearance holder may be allowed to extract
                                         the sand and gravel deposit in these
                                         locations to manage aggradation problem.

                                     b) The distance between sites for sand and
                                         gravel    mining    shall    depend     on      the
                                         replenishment rate of the river. Sediment
                                         rating curve for the potential sites shall be
                                         developed and checked against the extracted
                                         volumes of sand and gravel.

                                     c) Sand and gravel may be extracted across the
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                                         entire active channel during the dry season.

                                     d) Abandoned stream channels on the terrace
                                         and inactive floodplains be preferred rather
                                         than active channels and their deltas and
                                         flood plains. The stream should not be
                                         diverted to form the inactive channel.

                                     e) Layers of sand and gravel which could be
                                         removed from the river bed shall depend on
                                         the width of the river and replenishment
                                         rate of the river.

                                     f) Sand and gravel shall not be allowed to be
                                         extracted where erosion may occur, such as
                                         at the concave bank.

                                     g) Segments of the braided river system should
                                         be used preferably falling within the lateral
                                         migration area of the river regime that
                                         enhances      the    feasibility   of   sediment
                                         replenishment……”

                            19. Clause 4 of the guidelines of 2020 deals with
                                 Requirements for Monitoring & Enforcement and its
                                 relevant sub-clauses are as under:—

                                     xxx…………….xxx…………………. xxx

                                     ii) The mining lease auctioned by State
                                 government as per their Minor Mineral Concession
                                 Rules are granted of Letter of Intent (LoI), but it has
                                 been observed that many of the sites are not suitable
                                 w.r.t. environmental aspects. In most of the cases,
                                 the unplanned grant of mining lease leads to
                                 formation of cluster and/or contiguous cluster of
                                 small mining leases which sometimes is difficult to
                                 regulate and monitor. In order to address such
                                 issues, more emphasis is required on the preparation
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                                 of District Survey Report and its format for
                                 reporting.

                                     xxx…………….xxx……………….xxx

                                     iv)   There       is    no    practice    for   regular
                                 replenishment study to ascertain the rate of
                                 depositing, plan and section needs to be prepared
                                 based on the restrictions provided in letter of intent
                                 and   provisions       of   Sustainable      Sand    Mining
                                 Management Guidelines 2016.

                                     xxx…………….xxx…………………….xxx

                                     viii) The river reaches with sand provide the
                                 resource and thus it is necessary to ascertain the
                                 rate of replenishment of the mineral. Regular
                                 replenishment study needs to be carried out to keep
                                 a balance between deposition and extraction. This
                                 document provides the procedure to be followed
                                 for conducting replenishment study.

                                     xxx………………….xxx…………….xxx

                                     4.1.1 Preparation of District Survey Report.

                                     “Sustainable Sand Mining Guidelines, 2016”
                                 issued by MoEF&CC requires preparation of
                                 District Survey Report (DSR), which is an important
                                 initial step before grant of mining lease/LoI. The
                                 guidelines emphasize detailed procedure to be
                                 followed for the purpose of identification of areas of
                                 aggradation/deposition           where   mining     can    be
                                 allowed and identification of areas of erosion and
                                 proximity    to       infrastructural     structures      and
                                 installation where mining should be prohibited.
                                 Calculation of annual rate of replenishment,
                                 allowing time for replenishment after mining,
                                 identification of ways of scientific and systematic
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                                  mining; identifying measures for protection of
                                  environment         and   ecology    and   determining
                                  measures      for    protection     of   bank   erosion,
                                  benchmark (BM) with respect to mean Sea Level
                                  (MSL) should be made essential in mining channel
                                  reaches (MCR) below which no mining shall be
                                  allowed.

                                     Xxx…………….xxx…………………….xxx

                                     Therefore, preparation of District Survey Report
                                  is a very important step and sustainable sand
                                  mining in any part of the country will depends on
                                  the quality of District Survey Report.

                                     xxx…………….xxx…….……………….xxx

                                     a) District Survey Report for sand mining shall
                                  be prepared before the auction/e-auction/grant of
                                  the mining lease/Letter of Intent (LoI) by Mining
                                  department or department dealing the mining
                                  activity in respective states….”

                        20. Clause 5 deals with replenishment study and provides as
                        under:-

                                     “5.0 REPLENISHMENT STUDY

                                     The need for replenishment study for river bed
                                  sand is required in order to nullify the adverse
                                  impacts arising due to excessing sand extraction.
                                  Mining within or near riverbed has a direct impact
                                  on the stream's physical characteristics, such as
                                  channel geometry, bed elevation, substratum
                                  composition and stability, in-stream roughness of
                                  the bed, flow velocity, discharge capacity, sediment
                                  transport capacity, turbidity, temperature etc.
                                  Alteration or modification of the above attributes
                                  may cause an impact on the ecological equilibrium
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                                 of the riverine regime, disturbance in channel
                                 configuration and flow-paths. This may also cause
                                 an adverse impact on instream biota and riparian
                                 habitats. It is assumed that the riparian habitat
                                 disturbance is minimum if the replenishment is
                                 equal to excavation for a given stretch. Therefore,
                                 to minimize the adverse impact arising out of sand
                                 mining in a given river stretch, it is imperative to
                                 have a study of replenishment of material during
                                 the defined period.”

                                                              [emphasis supplied]

                       21. As per clause 6.1, the mining operation is required to be
                        strictly carried out in accordance with the approved mining
                        plan. Clause 6.1 reads as under:-

                                     “6.1 Mining Operation:

                                     The mining operations should be strictly carried
                                 out in accordance with the approved mining plan
                                 and after complying with all the conditions
                                 stipulated in Environmental & Other Statutory
                                 Clearance. Mine owner shall follow the operational
                                 procedure (for sale, dispatch, storage, reserve
                                 reconciliation and transportation) as may be defined
                                 by the concerned state government in its monitoring
                                 guidelines. Mine owner should comply with the
                                 recommendation and suggestion made by the High-
                                 Power Committee as applicable.”

                      22. Clause 8.1 of the guidelines of 2020 relates to pre-
                        requisite for starting sand mining operation. Sub-clause (i)
                        necessitates preparation of a comprehensive mining plan
                        and prohibits mining in the area which has not been
                        identified in the comprehensive mining plan of the district.
                        Sub-clause (ii) requires conducting replenishment study on
                        the regular basis. In terms of clause 4.3, the details of
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                        replenishment study conducted for all the years needs to be
                        included at the time of review of the mining plan.

                                 A cogent reading of above clauses of 2020
                         guidelines reveal that replenishment study is necessary for
                         grant of EC for sand mining.”

                         48.     The Hon’ble Supreme Court even while

         passing the interim order in the case of Pawan Kumar (supra)

         which has been quoted herein-above had emphasized the

         mandatory requirement of preparation of DSR, of which,

         replenishment study forms an integral part thereof and held that

         even though the State Government may carry on mining

         activities through Bihar State Mining Corporation for which it

         may employ the services of the contractors. However, while

         doing so, the State Government shall ensure that all

         environmental concerns are taken care of and no damage is

         caused to the environment. Therefore, it is clear that even while

         permitting for grant of temporary mining permits, the Hon’ble

         Supreme Court had mandated that the State Government shall

         ensure that all environmental concerns are taken care of and no

         damage is caused to the environment.

                         49.     Recently, the Hon’ble Supreme Court in the

         case of State of Uttar Pradesh & Anr. vs. Gaurav Kumar &

         Ors. reported as 2025 SCC OnLine SC 1069 = 2025 INSC 650

         has held as under:-
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                          “20. Conclusion: Having considered the regulatory
                                 regime introduced from time to time, increasing the
                                 width as well as the depth of scrutiny before
                                 granting an environmental clearance for sand
                                 mining, we are of the opinion that there is a
                                 mandatory requirement of preparation of a DSR.
                                 The DSR shall form the basis for application of
                                 environmental clearance. It shall also be the basis
                                 for preparation of reports and also appraisal of the
                                 projects. Another important facet of DSR is that it
                                 shall be prepared for all the districts and the draft is
                                 to be placed in the public domain. There is a
                                 requirement for keeping a copy of DSR in
                                 Collectorate. It must also be posted on the district's
                                 website for 21 days. After comments are received,
                                 they shall be considered and if found correct, they
                                 will be incorporated in the final report. The final
                                 DSR will then be finalized within 6 months by the
                                 DEIAA. The lifetime of the report is five years. After
                                 five years the existing DSR will not be tenable and a
                                 new DSR will have to be prepared and finalized. The
                                 purpose and object of prescribing a lifetime of five
                                 years for subsistence of a DSR is for the reason that
                                 the position of ecology and the environment is
                                 rapidly changing and the position that exists five
                                 years back, may not subsist for later days. It is true
                                 that it might have changed even before the expiry of
                                 five years but a reasonable estimate, to work as a
                                 benchmark is a policy consideration. May be a
                                 precautionary principle, it is not only legal and
                                 valid but is also mandatory. It must be enforced
                                 strictly and with all vigor.
                         21. We conclude by holding that:

                             (i). A District Survey Report is a document of seminal
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                                  importance as it enables informed decision making.

                               (ii). Preparation of a DSR as per the procedure
                                  prescribed for its preparation under Appendix X,
                                  read with para 7(iii)(a), is required to be followed
                                  meticulously.

                               (iii). A valid and a subsisting DSR alone can be the
                                  basis for an application for grant of EC. A draft
                                  DSR is untenable for grant of an EC.

                               (iv). Preparation of reports and appraisal of projects by
                                  DEIAA and DEAC shall be on the basis of a valid
                                  and a subsisting DSR.

                               (v). DEIAA and DEAC are recognized as the authorities
                                  fastened with the statutory duty of preparing the
                                  DSR every five years and this duty compels them to
                                  have a comprehensive and a real time perspective of
                                  the environment position of the district including its
                                  eco-sensitivity and other fragilities.

                         50.      In the case of Union Territory of J & K vs.

         Raja Muzaffar Bhatta (supra), the Hon’ble Supreme Court has

         reiterated the importance and mandatory nature of a valid

         replenishment study and concluded as under:-

                            “1. In State of UP v. Gaurav Kumar (2025 SCC OnLine
                                  SC 1069), we have declared that a valid and
                                  subsisting District Survey Report is mandatory for
                                  grant of environmental clearance for sand mining.
                                  We have also annulled certain environmental
                                  clearances, even though recommended by District
                                  Expert Appraisal Committee and granted by District
                                  Level Environment Impact Assessment Authority, on
                                  the basis that a ‘draft DSR’ is untenable in law
                                  (2025 SCC OnLine SC 1069). In this appeal we take
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                                 a step further. District Survey Reports are prepared
                                 under para 7(iii) of EIA notification dated
                                 15.01.2016 following the mandatory procedure laid
                                 down in Appendix X read with Sustainable Sand
                                 Mining      Management        Guidelines,         2016     and
                                 Enforcement and Monitoring Guidelines for Sand
                                 Mining, 2020. The purpose and objective of
                                 preparing such District Survey Report is to
                                 scientifically locate the place for sand mining after
                                 calculation of annual rate of replenishment for
                                 allowing mining in the area.

                            2.   Just as forest conservation requires assessment of
                                 tree growth rate before permitting timber harvesting
                                 to ensure that felling of trees does not exceed tree
                                 growth, a replenishment study enables us to take an
                                 informed decision as to whether sand mining can be
                                 permitted without degrading the rivers’ natural
                                 balance. Importance of replenishment study is
                                 explained in the Sand Mining Guidelines 2020 as
                                 follows:

                                          “The need for replenishment study for river
                                          bed sand is required in order to nullify the
                                          adverse impacts arising due to excessive
                                          sand extraction. Mining within or near
                                          riverbed has a direct impact on the stream's
                                          physical characteristics, such as channel
                                          geometry,     bed         elevation,     substratum
                                          composition        and      stability,       in-stream
                                          roughness     of    the     bed,     flow     velocity,
                                          discharge     capacity,      sediment        transport
                                          capacity,     turbidity,       temperature         etc.
                                          Alteration or modification of the above
                                          attributes may cause an impact on the
                                          ecological    equilibrium       of     the    riverine
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                                           regime, disturbance in channel configuration
                                           and flow-paths. This may also cause an
                                           adverse impact on in-stream biota and
                                           riparian habitats. It is assumed that the
                                           riparian habitat disturbance is minimum if
                                           the replenishment is equal to excavation for
                                           a given stretch. Therefore, to minimize the
                                           adverse impact arising out of sand mining
                                           in a given river stretch, it is imperative to
                                           have a study of replenishment of material
                                           during the defined period.”

                            3.   It is, therefore, compelling to hold that a DSR is
                                 valid     and      tenable   only   when    a   proper
                                 replenishment study is conducted.

                                 xxxx

                                 10. Need for replenishment study:

                            29. From the foregoing analysis, it is apparent that in
                                 light of Guidelines, 2016 and the Guidelines, 2020,
                                 the absence of a replenishment study renders a DSR
                                 fundamentally         defective.    These   guidelines
                                 categorically require that any assessment of
                                 mineable mineral quantity must be premised on
                                 scientific estimation of replenishment rates, failing
                                 which the DSR lacks the foundational data
                                 necessary to determine sustainable extraction
                                 limits.

                            30. Over the past two decades, environmental statutory
                                 and regulatory law in India has undergone
                                 significant evolution, particularly in response to the
                                 challenges posed by unregulated and unsustainable
                                 sand mining. Recognizing the adverse ecological
                                 impacts of such activities, successive legal and
                                 policy frameworks have progressively tightened the
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                                 requirements for environmental compliance. In
                                 order to appreciate the present controversy, it was
                                 necessary to retrace the legal trajectory. Recently,
                                 this Court has discussed, in detail, the legal regime
                                 surrounding the preparation, nature, scope and
                                 importance of DSR in Gaurav Kumar (supra).
                                 However, the focal point for present discussion is the
                                 value that must be appended to replenishment study
                                 before EC is granted to mining operations.

                            31. Demand for construction-grade sand is growing at
                                 a tremendous rate and it is said that the world is
                                 expected to run out of this resource by 2050.
                                 Construction-grade sand, can be found in aquatic
                                 environments, such as rivers and is a provisioning
                                 ecosystem     service.   Even     under      controlled
                                 circumstances, the practice of extracting sand from
                                 the riverbed and banks impacts the environment.
                                 In the physical environment, the primary effects
                                 are riverbed widening and lowering. In the
                                 biological environment, the overarching effect is a
                                 reduced biodiversity and stretches from the aquatic
                                 and shoreline flora and fauna to the whole
                                 floodplain area. Due to easy access, river sand and
                                 gravel have been used extensively in construction
                                 projects. Depending on the mining operation
                                 method as well as morphologic and hydraulic
                                 characteristics of the river, sand mining may cause
                                 bed   and    bank     erosion   or   other    negative
                                 consequences for the river eco-system. It is,
                                 therefore,   necessary    to    conduct   appropriate
                                 studies, including that of replenishment to explore
                                 sustainable and cost-effective methods for river
                                 mining.

                            32. Without a proper study of the existing position of the
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                                 riverbed and its sustainability for further sand
                                 mining, grant of environmental clearances would be
                                 detrimental for the ecology. It has therefore been
                                 held that a detailed study leading to a preparation of
                                 the replenishment report is an integral part of the
                                 DSR. If the DSR becomes the foundation for
                                 consideration of an application for environmental
                                 clearance,     then   it   is   compelling   to   ensure
                                 replenishment studies are undertaken in advance
                                 and the report forms an integral part of the DSR.

                            33. In view of the existing legal regime that mandates
                                 preparation of replenishment report in a scientific
                                 manner and such a report forming an integral part
                                 of the District Survey Report, we hold that a
                                 District     Survey    Report     without    a    proper
                                 replenishment study is equally untenable.”

                         51.     It is settled law that the Doctrine of Public

         Trust binds the State to protect the environment. Recently a

         nine-judge Bench of the Hon’ble Supreme Court in Mineral

         Area Development Authority & Anr. v. SAIL & Anr. reported as

         (2024) 10 SCC 1 had held as under:-

                                 “(iv) Natural resources and the public trust
                                 doctrine
                           59. The public trust doctrine is founded on the principle
                                 that certain resources are nature's bounty which
                                 ought to be reserved for the whole populace, for the
                                 present and for the future. [ Joseph L. Sax, “The
                                 Public Trust Doctrine in Natural Resource Law :
                                 Effective Judicial Intervention”, (1970) Michigan
                                 Law Review 471, 484.] Since these resources are
                                 intrinsically important to every person in society,
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                                 the State Acts as a public trustee to safeguard them.
                                 In M.C. Mehta v. Kamal Nath [M.C. Mehta v. Kamal
                                 Nath, (1997) 1 SCC 388, para 34], Kuldip Singh, J.
                                 observed that the State is the trustee of all natural
                                 resources which are by nature meant for public use
                                 and enjoyment. The learned Judge further observed
                                 that the State has a legal duty to protect natural
                                 resources which cannot be converted into private
                                 ownership. [M.C. Mehta v. Kamal Nath, (1997) 1
                                 SCC 388, para 34] The environment and natural
                                 resources are national assets and subject to
                                 intergenerational equity. [M.C. Mehta v. Union of
                                 India, (2009) 6 SCC 142, para 45] The public trust
                                 doctrine looks beyond the needs of the present
                                 generation and obligates the State to protect natural
                                 resources for future generations as well. [T.N.
                                 Godavarman Thirumulpad v. Union of India, (2006)
                                 1 SCC 1, para 89]
                           60. While dealing with the allocation of spectrum in CPIL
                                 v Union of India [CPIL v. Union of India, (2012) 3
                                 SCC 1] , this Court held that the State should
                                 distribute natural resources in consonance with the
                                 principles of equality and public trust to ensure
                                 against action detrimental to public interest. The
                                 public trust doctrine imposes restrictions and
                                 obligations on the Government to protect long-
                                 established public rights over short-term private
                                 rights and private gain. [Fomento Resorts & Hotels
                                 Ltd. v. Minguel Martins, (2009) 3 SCC 571, para
                                 55 : (2009) 1 SCC (Civ) 877] However, the
                                 obligation extends to every person who exercises
                                 rights over natural resources to use them without
                                 impairing or diminishing the rights of people and
                                 long-term interests in that property or resource.
                                 [Fomento Resorts & Hotels Ltd. v. Minguel Martins,
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                                 (2009) 3 SCC 571, para 55 : (2009) 1 SCC (Civ)
                                 877] In Reliance Natural Resources Ltd. v. Reliance
                                 Industries Ltd. [Reliance Natural Resources Ltd. v.
                                 Reliance Industries Ltd., (2010) 7 SCC 1, para 114],
                                 in the context of Article 297 [Constitution of India,
                                 Article 297] of the Constitution, this Court held that
                                 the nature of the word “vest” must be seen in the
                                 context of the public trust doctrine. [Reliance
                                 Natural Resources case, (2010) 7 SCC 1, para 122]
                           61. The principle which emanates from the above
                                 discussion is that the State holds all natural
                                 resources, including minerals, as a trustee of the
                                 public and must deal with them in a manner
                                 consistent with the nature of such a trust. [Natural
                                 Resources Allocation, In re, Special Reference No. 1
                                 of 2012, (2012) 10 SCC 1, para 88]
                           62. The Central Government or the State Government
                                 may not always be the “owner” of the underlying
                                 minerals. But the Constitution empowers both
                                 Parliament (under List I Entry 54) and the State
                                 Legislatures (under List II Entry 23) to regulate
                                 mines and mineral development, the entrustment to
                                 the State being subject to the power of Parliament to
                                 regulate the domain. The Constitution has entrusted
                                 the Union and the States with the responsibility to
                                 regulate    mines     and   mineral   development   in
                                 consonance with the principles of the public trust
                                 doctrine and sustainable development of mineral
                                 resources. Under the MMDR Act, the Central
                                 Government, acting as a public trustee of minerals,
                                 regulates prospecting and mining operations in
                                 public interest. [State of Rajasthan v. Gotan Lime
                                 Stone Khanji Udyog (P) Ltd., (2016) 4 SCC 469,
                                 para 29; Orissa Mining Corpn. Ltd. v. Union of
                                 India, (2013) 6 SCC 476, para 58] In the process,
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                                 the legislation seeks to increase awareness of the
                                 compelling need to restore the serious ecological
                                 imbalance and protect against damage being caused
                                 to the nature. [State (NCT of Delhi) v. Sanjay,
                                 (2014) 9 SCC 772, para 32 : (2014) 5 SCC (Cri)
                                 437]
                           63. In Pradeep S. Wodeyar v. State of Karnataka
                                 [Pradeep S. Wodeyar v. State of Karnataka, (2021)
                                 19 SCC 62, para 49.3], one of us (D.Y.
                                 Chandrachud, J.) observed that the essence of the
                                 MMDR Act is to “protect humankind and every
                                 species whose existence depends on natural
                                 resources from the destruction which is caused by
                                 rapacious and unregulated mining”. The Court
                                 noted that the restrictions under Section 4 of the
                                 MMDR Act are intrinsically meant to protect the
                                 environment and communities who depend on the
                                 environment.
                           64. The principle that the Union and State Governments
                                 act as public trustees of mineral resources has been
                                 incorporated in the MMDR Act. Section 4-A
                                 empowers the Central Government to prematurely
                                 terminate a prospecting licence, exploration licence,
                                 or mining lease, after consultation with the State
                                 Government in the interests of:
                                         (i) the regulation of mines and mineral
                                         development;
                                         (ii) preservation of the natural environment;
                                         (iii) control of floods;
                                         (iv) prevention of pollution;
                                         (v) avoiding danger to public health or
                                         communications;
                                         (vi) ensuring the safety of buildings,
                                         monuments or other structures;
                                         (vii) conservation of mineral resources; and
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                                         (viii) maintaining safety in the mines or for
                                         such other purposes. [ See State of Haryana
                                         v. Ram Kishan, (1988) 3 SCC 416, para 7.
                                         This Court observed that Section 4-A : (SCC
                                         p. 420, para 7)
                                 Moreover, the MMDR Act now mandates grant of
                                 mining leases, [ MMDR Act, Section 10-B]
                                 exploration licences, [ MMDR Act, Section 10-BA]
                                 and composite licences [ MMDR Act, Section 11] in
                                 respect of notified minerals through the process of
                                 auction. The Central Government is empowered to
                                 prescribe the terms and conditions subject to which
                                 the auction shall be conducted.
                          65.    The regulatory regime under the MMDR Act
                                 recognises the important role of the State in
                                 regulating mines and mineral development. This
                                 emerges from the standpoint of the following
                                 perspectives:
                                         (i) the State is a public trustee of natural
                                         resources, including minerals;
                                         (ii) pursuant to its role as a public trustee,
                                         the State has been empowered to regulate
                                         prospecting and mining operations;
                                         (iii) the provisions of the statute reflect the
                                         priority of the State to regulate mining and
                                         related activities to ensure sustainable
                                         mineral development;
                                         (iv) prospecting and mining operations may
                                         be carried out by both the government as
                                         well as private lessees bearing in mind the
                                         public interest; and
                                         (v) the Government has to ensure that
                                         mineral concessions are granted in a fair
                                         and transparent manner.”
                                                                (emphasis supplied)
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                         52.     Further the Hon’ble Supreme Court in

         Mineral Area Development Authority v. SAIL (supra) had dealt

         with the meaning of royalty and distinguished it from ‘dead

         rent’ and explained as under –

                                 “(iv) Meaning of “royalty”
                           99. At the outset we clarify that in this reference, we are
                                 dealing with “royalty” in the context of the MMDR
                                 Act.   Royalty        is   generally   understood   as
                                 compensation paid for rights and privileges enjoyed
                                 by the grantee. It has its genesis in the agreement
                                 entered into between the grantor and grantee. In
                                 Inderjeet Singh Sial v. Karam Chand Thapar
                                 [Inderjeet Singh Sial v. Karam Chand Thapar,
                                 (1995) 6 SCC 166] , this Court observed that royalty
                                 is equivalent to the expression “jura regalia” or
                                 “jura regia”. Jura regalia is defined as royal
                                 prerogatives      or       rights.     [   Ramanatha
                                 Aiyar, Advanced Law Lexicon, Vol. 3 (2005) 2789.]
                                 For centuries, gold and silver mines (also called as
                                 royal metals) in the United Kingdom were treated as
                                 belonging to the Crown. Royal metals could be
                                 mined only after payments in the form of royalties
                                 were made to the Crown. The use of the word
                                 “royalty” underwent change in the United Kingdom
                                 with the decentralisation of the sovereignty which
                                 was absorbed by the landowners. [ J.U. Nef, The
                                 Rise of the British Coal Industry (Routledge, 1966).]
                                 Land ownership was concentrated in the hands of
                                 landowners, who conceded the right to work mines
                                 to lessees in return for consideration which took the
                                 form of dead rent and royalties. [ Royal Commission
                                 on Mining Royalties, Final Report of the Royal
                                 Commission Appointed to Inquire into the Subject of
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                                 Mining Royalties (1893) 4.]
                           100. This Court has had occasion to analyse the meaning
                                 of the expression “royalty” in its decisions. In
                                 H.R.S. Murthy v. Collector [H.R.S. Murthy v.
                                 Collector, 1964 SCC OnLine SC 176 : (1964) 6 SCR
                                 666, para 6], a Constitution Bench observed that
                                 royalty connotes a payment made for materials or
                                 minerals won from land. In D.K. Trivedi & Sons v.
                                 State of Gujarat [D.K. Trivedi & Sons v. State of
                                 Gujarat, 1986 Supp SCC 20] , the distinction
                                 between “royalty” and “dead rent” was explained
                                 thus : (D.K. Trivedi case [D.K. Trivedi & Sons v.
                                 State of Gujarat, 1986 Supp SCC 20, para 45] , SCC
                                 p. 54, para 39)
                                         “39. In a mining lease the consideration
                                         usually moving from the lessee to the lessor
                                         is the rent for the area leased (often called
                                         surface rent), dead rent and royalty. Since
                                         the mining lease confers upon the lessee the
                                         right not merely to enjoy the property as
                                         under an ordinary lease but also to extract
                                         minerals from the land and to appropriate
                                         them for his own use or benefit, in addition
                                         to the usual rent for the area demised, the
                                         lessee is required to pay a certain amount in
                                         respect       of   the   minerals    extracted
                                         proportionate to the quantity so extracted.
                                         Such payment is called “royalty”. It may,
                                         however, be that the mine is not worked
                                         properly so as not to yield enough return to
                                         the lessor in the shape of royalty. In order to
                                         ensure for the lessor a regular income,
                                         whether the mine is worked or not, a fixed
                                         amount is provided to be paid to him by the
                                         lessee. This is called “dead rent”. “Dead
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                                         rent” is calculated on the basis of the area
                                         leased while royalty is calculated on the
                                         quantity of minerals extracted or removed.
                                         Thus, while dead rent is a fixed return to the
                                         lessor, royalty is a return which varies with
                                         the quantity of minerals extracted or
                                         removed.”
                                                                (emphasis supplied)
                            101. Minerals are exhaustible and finite resources. Each
                                 quantity of mineral removed leads to the depletion
                                 of the mineral stock of the mine. [ W.R. Sorley,
                                 “Mining Royalties and their Effect on the Iron and
                                 Coal Trades”, (1889) 52(1) Journal of Royal
                                 Statistical Society 60, 66.] Under a mining lease, a
                                 lessee acquires a right or interest in minerals. This
                                 right or interest allows the lessee to extract minerals
                                 and consume them. Royalty is a payment made by
                                 the lessee to the lessor or proprietor of the minerals
                                 for the removal of minerals. Royalty also serves to
                                 compensate the lessor for the degradation of the
                                 value of the mine because of the extraction of
                                 minerals. [ W.R. Sorley, “Mining Royalties and their
                                 Effect on the Iron and Coal Trades”, (1889) 52(1)
                                 Journal of Royal Statistical Society 60, 66.]
                            102. In Bherulal v. State of Rajasthan [Bherulal v. State
                                 of Rajasthan, 1956 SCC OnLine Raj 9, para 8 : AIR
                                 1956 Raj 161] , a Division Bench of the Rajasthan
                                 High Court explained the concept of royalty in the
                                 following terms : (SCC OnLine Raj para 8)
                                         “8 … In Wharton's Law Lexicon, “royalty”
                                         is defined as ‘payment to a patentee by
                                         agreement on every article made according
                                         to his patent; or to an author by a publisher
                                         on every copy of his book sold; or to the
                                         owner of minerals for the right of working
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                                         the same on every on or other weight
                                         raised.’The present case is of the third kind,
                                         namely, payment to the owner of minerals
                                         for the right of working the same. This
                                         payment is based on the produce, and the
                                         rate is fixed as so much per ton or other
                                         weight. It is clear that royalty has nothing to
                                         do with where the purchaser is taking the
                                         mineral, or to whom he is going to sell it,
                                         whether at the place where the mine is
                                         situated or at some place hundreds of miles
                                         away. … It is clear, therefore, that royalty is
                                         a charge by the owner of minerals from
                                         those to whom he gives the concession to
                                         remove them, and the charge is on
                                         production, the rate being fixed according to
                                         weight.”
                                                        (emphasis supplied)
                          103. The essential characteristics of royalty are that:
                                         (i) it is a consideration or payment made to
                                         the proprietor of minerals, either the
                                         government or a private person;
                                         (ii) it flows from a statutory agreement (a
                                         mining lease) between the lessor and the
                                         lessee;
                                         (iii) it represents a return for the grant of a
                                         privilege (to the lessee) of removing or
                                         consuming the minerals; and
                                         (iv) it is generally determined on the basis of
                                         the quantity of the minerals removed.
                          104. In comparison, dead rent acts as a deterrent against
                                 a leaseholder cornering a mining lease and keeping
                                 the mineral resources idle. [ Government of India,
                                 Ministry of Mines, “Mineral Royalties” (January
                                 2011) 27.] Similar to royalty, dead rent is also a
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                                 statutory imposition and an integral part of the
                                 mining lease, but it generally does not serve as a
                                 consideration for the removal or consumption of
                                 minerals. The dead rent is determined on the basis
                                 of the area of land covered by the lease. Imposition
                                 of dead rent ensures that the proprietor obtains a
                                 fixed rent from the lessee even if the mine remains
                                 unworked. Therefore, dead rent is not in addition to
                                 royalty but an alternative.”


                         53.     From the afore-quoted decisions, it is

         patently clear that a replenishment study must be undertaken by

         the State before auctioning the sand ghats since the

         replenishment study forms the very basis on which the quantity

         of permissible mining is determined and subsequently the

         environmental clearance is granted.

                         54.     In the present case, the District Survey

         Report was prepared by the Sub Divisional Committee and

         approved by SEIAA on 07.04.2022. Pertinently, the notice

         inviting tender (NIT) was issued on 13.09.2022. It is an

         admitted position that short term permits for mining of sand

         were issued for overlapping areas and mining/extraction of sand

         took place subsequent thereto.

                         55.     It is therefore, abundantly clear that the

         respondents did not consider a fresh replenishment study after

         the mining activities by the third parties under the short-term
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         permits were ceased, to ascertain the availability of sand and the

         replenishment rate of the aforesaid sand. Moreover admittedly,

         there had been a reduction in the availability of sand owing to

         continued mining and the purported declining rate of

         replenishment.

                         56.     The State ought to have considered a fresh

         replenishment study in order to ascertain the availability of sand

         and the true prevailing replenishment rates before proceeding

         with the auction.

                         57.     In the impugned order dated 07.04.2025, the

         respondent authorities have merely averred that there is

         sufficient availability of sand in the sand ghats without

         adverting to scientific basis for arriving at such a conclusion and

         without refuting the recent replenishment study conducted in

         January, 2025. A mere bald statement without any scientific

         basis to refute the scientific replenishment study as asserted by

         the petitioner would not suffice and more importantly would

         cause aggressive mining of sand in the sand ghat and hamper

         the ecosystem.

                         58.     What is clearly crystallized is that the annual

         extractable quantity must be less than the annual replenishment

         rate in order to align strictly with sustainable mining practices.
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         There is a huge variance, inasmuch as, a drastic reduction is

         noticed in the availability of sand and its replenishment rate

         between the year 2022 and 2025. Therefore, in the interest of

         justice and in order to prevent aggressive sand mining beyond

         the availability and its natural replenishment rate, this Court

         deems it appropriate to remit the matter back to the respondent

         authorities to conduct fresh replenishment study and thereafter

         decide the permissible extractable sand quantity and the royalty

         payable by the petitioner in accordance with law.

                         59.     This      Court       has   noted   that   fresh

         replenishment study is warranted and deemed necessary in the

         facts of the present case since there is allegedly a significant

         reduction in the availability of the sand as noted in two

         replenishment studies conducted by the very same institute, i.e.,

         CMPDIL for the very same sand ghat and also since admittedly

         mining activities were permitted even after the auction of the

         aforesaid sand ghat in favour of the petitioner.

                         60.     This Court has also duly noted that tethering

         the petitioner to pay much more that what is actually

         mined/extracted, would be arbitrary and unjust. The State

         cannot enforce covenant in a mining lease that compels the

         lessee to pay royalty even when the mineral in question is not
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         available in sufficient quantity for its extraction, since that

         would be clearly unjust.

                         61.     For the foregoing reasons, in order to strike a

         fair balance and keeping in view the sustainable mining

         practice, this Court deems it appropriate in the interest of justice

         to pass the following directions:-

                            i. The respondent nos. 3 to 8 shall get a fresh

                                 replenishment study done for the Bhojpur

                                 Sone 35 sand ghat to ascertain the present

                                 and true quantity of sand available in the

                                 sand ghat and its replenishment rate in the

                                 sand ghat, which has been allotted to the

                                 petitioner.

                           ii.   The question of quantum of royalty shall be

                                 determined by the competent authority after

                                 the submission of fresh replenishment study

                                 report for the subject sand ghat. The

                                 respondents shall take the decision with

                                 regard to the royalty within three weeks from

                                 the date of submission of the aforesaid

                                 replenishment         report   and   inform   the

                                 petitioner.
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                           iii. Since the environmental clearance granted to

                                 the petitioner vide letter dated 19.12.2023

                                 has failed to consider the actual availability

                                 of sand, the same is rendered otiose. The

                                 matter is remitted to the respondent nos.9

                                 and 10 for reconsidering the case of the

                                 petitioner in light of the fresh replenishment

                                 study for Bhojpur Sone 35 sand ghat.

                           iv. Since        this       Court   has   directed   for

                                 reconsidering the case of the petitioner in

                                 light of the fresh replenishment study of the

                                 sand ghat, the respondents are restrained

                                 from taking any coercive steps including

                                 recovery of royalty amount against the

                                 petitioner till the case of the petitioner is

                                 reconsidered by the respondents.

                           v.    The aforesaid exercise must be completed

                                 expeditiously and the mining activities must

                                 commence swiftly thereafter in accordance

                                 with law, in order to prevent any protraction

                                 of financial loss to the State.

                           vi. In view of the above, the impugned order
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                                                       61/61




                                              dated 07.04.2025 passed by the respondent

                                              no.2 is quashed.

                                      62.     With      the    aforesaid   observations   and

                      directions, this writ petition is allowed to the above extent.



                                                              (Sandeep Kumar, J)


pawan/-
AFR/NAFR                N.A.F.R.
CAV DATE                01.11.2025
Uploading Date          31.01.2026
Transmission Date


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