JMM welcomes Supreme Court verdict on minerals royalty

Ranchi: The JMM in Jharkhand on Thursday welcomed the Supreme Court's verdict that said the legislative power to tax mineral rights vests with the states.

The judgement will give a boost to mineral-rich states like Jharkhand, a party leader said.

The legislative power to tax mineral rights vests with the states and the royalty paid on minerals is not a tax, the Supreme Court ruled on Thursday.

A nine-judge constitution bench headed by Chief Justice D Y Chandrachud, in a majority 8:1 verdict, said Parliament does not have the legislative competence to tax mineral rights under Entry 54 of List I of the Constitution which pertains to regulation of mines and mineral development by the Centre.

The pronouncement, which came as a setback to the Centre, however, said that Parliament can still legislate to impose "any limitations" on states' power to levy tax on mineral rights.

“We welcome the Supreme Court's verdict, as it will benefit Jharkhand on a large scale,” JMM spokesperson Manoj Pandey told PTI.

He claimed that mines exploited in the state benefited the entire country, except Jharkhand.

“Here people suffer displacements and there is environmental damage due to rampant mining. But people get negligible benefit in return,” Pandey said.

The Centre should now "consider seriously over the state’s demand of Rs 1.36 lakh crore, which the mining companies of the Union government owe to the state", he said.

Jharkhand Chief Minister Hemant Soren had on Wednesday slammed the Centre for “neglecting” the state in the Union budget, and alleged that the BJP leaders are “silent” over the dues from the Centre.

He claimed that the Centre owes Rs 1.36 lakh crore to the state and demanded that its dues be paid by the Union government.

Jharkhand mines secretary Jitendra Singh said he has not gone through the judgement.

“It will not be appropriate to comment until I go through the verdict,” he added.