Bombay High Court
VIREN BUILDCON LLP THROUGH PARTNER SAURABH SURANAversusTHE STATE OF MAHARASHTRA THR THE SEC REVENUE AND FOREST DEPT. AND ANR
- Decided
- Disposal
- Disposed Off
Holding
Excavated soil is not a minor mineral liable to royalty unless it is demonstrably used for the purposes specified in the notification under Section 3(e) of the Mines and Minerals Act, 1957.
Summary
Viren Buildcon LLP, a partnership firm, sought permission to construct on specific survey numbers and paid royalty for 897 brass of excavated soil. The Revenue Department discovered an additional 3,216.4 brass of soil excavated and imposed a penalty of Rs. 1,21,05,180 for unpaid royalty. The petitioner argued that excavation is a natural part of construction and that soil only becomes a "minor mineral" liable to royalty if used for purposes specified in the notification under Section 3(e) of the Mines and Minerals (Development and Regulation) Act, 1957, relying on the Supreme Court’s decision in Promoters and Builders Association of Pune v. State of Maharashtra. The respondents contended that the excess excavation constituted a minor mineral, invoking Section 48(7) of the Maharashtra Land Revenue Code, 1966, and that the order could not be challenged in this Court. The High Court held that unless the excavated material is positively shown to be used for the notified purposes, it cannot be classified as a minor mineral and royalty cannot be imposed. Consequently, the impugned order was quashed, the writ petition was allowed, and the petition was disposed.
Issues considered
- Whether excavated soil/earth in a construction activity constitutes a "minor mineral" liable to royalty under the Mines and Minerals (Development and Regulation) Act, 1957.
- Whether the revenue authority's order under Section 48(7) of the Maharashtra Land Revenue Code, 1966 can be challenged before the High Court.
- Whether the Supreme Court precedent in Promoters and Builders Association of Pune v. State of Maharashtra is applicable to the present facts.
Legislation cited
Subjects
- minor mineral
- royalty
- excavation
- construction
- Mines and Minerals Act
- Maharashtra Land Revenue Code
- Supreme Court precedent
- writ petition
- quashing order
Judgment
Gitalaxmi 44-WP-3022-2026-J.docx
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
WRIT PETITION NO. 3022 OF 2026
VIREN BUILDCON LLP
A Partnership Firm registered under the
provisions of Indian Partnership Act, 1932
having it’s office at Plot No. 28,
Opposite to Gate No. 10, Near Union Bank,
Marketyard, Pune-411 037.
THROUGH PARTNER MR. SAURABH SURANA,
Age 38 years, Occ.:Business. ...PETITIONER
Versus
1. THE STATE OF MAHARASHTRA
Through the Secretary,
Revenue and Forest Department, Mantralaya,
Mumbai-400 032.
2. THE TEHSILDAR, HAVELI
Tehsil Haveli, District-Pune. ...RESPONDENTS
Mr. S. S. Patwardhan i/b Mr. Harshad Sathe a/w Ms. Harshada
Shrikhande, learned counsel for the Petitioner.
Ms. Savina R. Crasto, learned AGP for the State-Respondent.
CORAM : ARUN R. PEDNEKER, J.
DATE : 28th SEPTEMBER, 2026.
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ORAL JUDGMENT :
1. Rule made returnable forthwith and by consent of learned
counsel appearing for the parties heard finally.
2. Learned counsel for the Petitioner submits that they have
permission to construct on Survey Nos. 44/1/2 and 44/1/3, Plot No.
28 and that they had paid royalty for excavation of earth of 897 brass
and paid royalty on the same. The Revenue Authorities have found
that there was excavation in addition of 3216.4 brass of
soil/earth/murum from the construction site and accordingly, have
imposed the penalty of Rs. 1,21,05,180/- for the excavated material.
3. Learned counsel for the Petitioner submits that the
excavation while construction is a natural part of construction
activity and that the excavated mineral has to be refilled in the same
site, except certain portion in which the RCC component is filled in.
Learned counsel submits that the royalty was paid on 897 brass of
murum.
4. Learned counsel for the Petitioner also submits that in view
of the judgment of Hon’ble Supreme Court in the case of Promoters
and Builders Association of Pune v/s. State of Maharashtra and
Others1, the loose soil/excavated earth does not become a minor
mineral unless it is removed and utilized for the purposes mentioned
in the notification issued under Section 3(e) of the Mines and
1
2015(1) Bom.C.R. 26.
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Gitalaxmi 44-WP-3022-2026-J.docx
Minerals (Development and Regulation) Act, 1957, i.e. for the
purpose of route laying, roads, embankments, railways, buildings to
be a minor minerals in addition to the minerals already declared as
minor minerals. The excavated earth becomes a minor mineral only
when it is used for the purposes mentioned in the said notification.
The Hon’ble Supreme Court in paragraph 11 of the said judgment
has held that,
“11. What is a mineral is not defined either under the MRTP Act
or the Code. The said expression is however defined by section
2(j) of the Mines Act, 1952 and section 3(a) read with section
3(e) of the Act of 1957. As mining activities and operations are
regulated by the provisions of the Act of 1957, it is the
definition contained in the said Act, which will be more relevant
for the present. Section 3(a) and Section 3(e) is in the
following terms :
“Section 3.-In this Act, unless the context otherwise requires,-
(a) “minerals” includes all minerals except mineral oils:
(b) xxxxx xxxx xxxxx
(c) xxxxx xxxx xxxxx
(e) “minor minerals” means building stones, gravel, ordinary
clay, ordinary sand other than sand used for prescribed
purposes, and any other mineral which the Central Government
may, by notification in the Official Gazette, declare to be a
minor mineral.
[(ea) “notified minerals” means any mineral specified in the
Fourth Schedule;]”
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Gitalaxmi 44-WP-3022-2026-J.docx
5. In the instant case, the end user is not established. Learned
counsel also submits that the panchanama reflects that the murum
was on the site and in any event, the same has to be refilled into the
soil.
6. Learned AGP opposes the submissions of learned counsel
for the Petitioner. Learned AGP submits that there is excess
excavation of mines and minerals and the Petitioner is liable to make
payment of the royalty. Learned AGP submits that the order passed
under Section 48(7) of the Maharashtra Land Revenue Code, 1966
can be challenged before the appropriate Appellate Authority and
that this Court’s jurisdiction may not be exercised. Learned AGP also
submits that sufficient opportunity of hearing was given to the
Petitioner and that thereafter the order of paying royalty is passed.
Learned AGP also submits that the issue is not covered under the
judgment in the case of Promoters and Builders Association of Pune
(supra). The Petitioner has excavated the excess material. It is
submitted that the excavated material is not found nearby the site
and hence, it has become clear that the same has been transported by
the Petitioner and used as minor mineral.
7. In the judgment of the Hon’ble Supreme Court in the case
of Promoters and Builders Association of Pune (supra), the earth
excavated is a minor mineral only when it is used for the end
products, as mentioned in the said notification. In any construction
activity, an excavation is a natural part of construction activity.
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Gitalaxmi 44-WP-3022-2026-J.docx
Certain extent of the excavated material is also required to be
refilled. However, unless it is positively demonstrated or clear
inferences are drawn that the material is used for the purposes as
mentioned in the notification, royalty cannot be imposed on the
excavated soil/earth, as the same cannot be quantified as minor
mineral. Extra excavation alone is not sufficient to hold that the
extra excavated material is a minor mineral as the excavation being a
natural part of the construction activity.
8. In view of the same, impugned order passed by the
concerned authority is quashed and set aside.
9. Writ Petition stands allowed and disposed of accordingly.
10. Rule made absolute in the above terms.
[ ARUN R. PEDNEKER, J. ]
Digitally signed
by GITALAXMI
GITALAXMI KRISHNA
KRISHNA KOTAWADEKAR
KOTAWADEKAR Date:
2026.10.03
11:04:49 +0530
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