Jharkhand High Court granted temporary relief to mining companies, halting the collection of the controversial Rs. 1200 composite user fee until a final decision. The court ruled that permits would continue to be issued without the fee. The next hearing is scheduled for 6th August.
The Jharkhand Hight Court has provided a temporary relief regarding the controversial composite user fee being levied by the government to the Mining Companies, operating in Jharkhand State. During the hearing of over 100 petitions filed by various mining companies challenging the imposition of this fee, the court decided that no such fee will be collected from these companies until the final verdict on the matter is reached. The bench, consisting of Chief Justice MS Ramchandra Rao and Justice Rajesh Shankar, recorded the statement made by the Advocate General of the state, Rajeev Ranjan. The statement confirmed that mining companies will continue to receive permits without the requirement of paying the composite user fee. This decision comes as a relief to many miners who had raised concerns about the legality of the charge.
The dispute began when mining companies, including Triveni Engicom, filed petitions questioning the legality of the Rs. 1200 composite user fee being imposed on them through the Jharkhand Integrated Mines & Mineral Management System (JIMMS) Portal. These companies argue that the fee is unwarranted and beyond the jurisdiction of the concerned authorities.
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Government to Hold Off Fee Collection Until Final Decision
In the ongoing legal dispute, the State Government had earlier issued a notice on 24th June 2025, instructing mining companies to pay the composite fee. However, the companies sought judicial intervention, arguing that the fee was not only illegal but also imposed without the authority of law. The Advocate General, while presenting the Government’s stance, assured the court that no coercive action would be taken against companies for non-payment of the fee until the matter is resolved. Moreover, despite the non-payment, the government will continue to issue mining permits via the JIMMS portal. The court’s latest decision halts the collection of this fee temporarily, giving the mining companies a relief while the case is pending. The next hearing is scheduled for 6th August 2025.
Why is the Fee Controversial?
The gist of the issue lies in the imposition of the composite user fee, which is an additional charge that mining companies are required to pay to obtain mining permits. The petitioners argue that this fee is not only excessive but also appears to be outside the scope of the powers vested in the state government’s mining directorate. This fee, which amounts to Rs. 1200, is billed as a composite user fee for obtaining mining permits via the JIMMS portal, a platform introduced by the State Government for mining operations. However, the companies argue that the fee is not legally enforceable and that it was arbitrarily imposed without any legislative or legal backing. In their petitions, the mining companies also questioned the validity of the Government’s directive to pay the fee and raised concerns that such an imposition was not supported by the law. Despite these objections, the Government had previously indicated that no forceful measures would be taken against companies refusing to pay the fee.
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Legal Developments and Court’s Direction
The hearing in the High Court saw strong representations from both sides. The petitioners, represented by senior advocates Sumit Gadodia and Indrajeet Sinha, maintained that the charge of the fee was beyond the powers of the mining directorate and that it was an illegal charge. They pointed out that the fee was added to the JIMMS portal without any formal legislation or rule backing it. The court’s decision to grant temporary relief has been seen as a significant step towards resolving the issue. While the legal dispute continues, the mining companies have been given the assurance that no fee will be collected during the pendency of the case.
Next Hearing of the Case
The case will be heard again on 6th August 2025, where further arguments will be made, and a final decision will be awaited. For now, mining companies in Jharkhand can breathe a sigh of relief as they continue their operations without the added burden of the composite user fee. This case highlights the growing tensions between Government regulations and the mining industry, particularly in resource-rich states like Jharkhand. The outcome of this case could set a precedent for similar disputes in the future and could have broader implications for the mining sector.
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