Benefit Odisha: Mineral Rich States Can Collect Past Dues On Royalty, Rules SC

New Delhi: The Supreme Court On Wednesday allowed mining-rich states to collect past dues on royalties from mining companies. The court ordered that states can impose levies with effect from April 1, 2005, and the payments will be staggered in 12 years, NDTV reported.

Last month, the Supreme Court upheld state governments’ right to levy royalty on mineral-bearing land, reasoning they had the competence and power to do so.

A bench led by Chief Justice DY Chandrachud delivered the landmark 8:1 verdict. ‘Royalty’ is not the same as ‘tax,’ ruled Justice BV Nagarathna while delivering the dissenting verdict.

The verdict will benefit mineral-rich states like Odisha, Jharkhand, Bengal, Chhattisgarh, Madhya Pradesh, and Rajasthan, as their governments can now charge additional levies on mining companies operating in their territories.