Karnataka High Court
WP/21388/2026 of M/S GMM ENTERPRISES Vs STATE OF KARNATAKA on 22 July 2026
CNR: KAHC010479352026 NC: 2026:KHC:37655-DB WP No. 21388 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 22ND DAY OF JULY, 2026 PRESENT THE HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE AND THE HON'BLE MRS. JUSTICE K.S. HEMALEKHA WRIT PETITION NO. 21388 OF 2026 (GM-MM-S)
HC-KAR
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 22ND DAY OF JULY, 2026
PRESENT
THE HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE
AND
THE HON'BLE MRS. JUSTICE K.S. HEMALEKHA
WRIT PETITION NO. 21388 OF 2026 (GM-MM-S)
BETWEEN:
1.
M/S GMM ENTERPRISES
A PARTNERSHIP FORMED VIDE
A PARTNERSHIP DEED
REG OFF. #3368/1
SHAMMANUR ROAD
LAKSHMI FLOUR MILL
LAKSHMI FLOUR MILLS PREMISES
DAVANAGERE - 577 004
REP. BY ITS PARTNER S.S. GANESH
…PETITIONER
(BY MS. DEEKSHA N. AMRUTHESH, ADVOCATE FOR
SRI AMRUTHESH N.P., ADVOCATE)
AND:
1.
STATE OF KARNATAKA
DEPARTMENT OF COMMERCE AND INDUSTRIES
VIKASA SOUDHA
DR. AMBEDKAR ROAD
BENGALURU - 560 001
REP. BY ITS SECRETARY
Digitally
signed by K
P SWETHA
Location:
High Court
of Karnataka
HC-KAR
2.
THE DIRECTOR
DEPARTMENT OF MINES AND GEOLOGY
KHANIJA BHAVAN
RACE COURSE ROAD
BENGALURU - 560 001
3.
THE SENIOR GEOLOGIST
DEPARTMENT OF MINES AND GEOLOGY
VIDYANAGAR
DAVANAGERE - 577 005
…RESPONDENTS
(BY SRI K.S. HARISH, GOVERNMENT ADVOCATE)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND
227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT
OF CERTIORARI, QUASHING OF ANNEXURE-A, THE REVISED
DEMAND
NOTICE
DATED
20/05/2026
BEARING
NO.GaBhuE:
HiBhuDa:OTS-NOTICE:2026-27/329
ISSUED
BY
THE
3RD RESPONDENT, SENIOR GEOLOGIST OF DEPARTMENT MINES
AND GEOLOGY, DAVANAGERE, DEMANDING RS.14,68,21,250/- AS
FINE ALONG WITH ANNEXURE-A1, THE DEMAND NOTICE DATED
07/05/2026 BEARING NO.GaBhuE: HiBhuDa:OTS-Notice 2026-27/246
ISSUED BY THE 3RD RESPONDENT BY INVOKING THE PROVISIONS
OF
RULE
44-A
OF
THE
KARNATAKA
MINOR
MINERALS
CONCESSION
(AMENDMENT)
RULES,
AS
ONE
TIME
SETTLEMENT (OTS) WITH PENAL PROVISIONS IN CASE OF
NON-COMPLIANCE WITHIN 45 DAYS FROM THE DATE OF RECEIPT
OF SAID NOTICE & ETC.
THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:
HC-KAR
CORAM: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE
and
HON'BLE MRS. JUSTICE K.S. HEMALEKHA
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ORAL ORDER
(PER: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE)
1. The petitioner has filed the present petition, inter alia, impugning a 'Revised Notice of OTS Demand' dated 20.05.2026 issued under Rule 44A of the Karnataka Minor Mineral Concession Rules, 1994. The said notice alleges that the petitioner has removed 19,96,539 metric tons of building stone without paying the royalty and has also mined 51,048 metric tons from encroachment mining.
2. The impugned notice indicates that respondent No.3 has issued the said notice to provide an opportunity to the petitioner to pay the penalty at a heavily discounted rate. The petitioner has been called upon to pay an OTS penalty of `14,68,21,250/- as a one time settlement. The petitioner seeks to contest the said notice. It is submitted that the same has been issued without affording the petitioner any opportunity to be heard.
3. The learned Additional Government Advocate appearing for the respondents states that although the impugned notice is styled
HC-KAR
as a demand notice, the last paragraph of the said notice clearly indicates that it is in the nature of a show cause notice. He points out that the petitioner be directed to provide an explanation to the notice of the competent authority along with appropriate documents, treating the said notice as a show cause notice. The petitioner is at liberty to respond to the same and the competent authority to issue a final notice after affording the petitioner an opportunity to be heard.
4. In view of the above, no further orders are required to be passed in this petition. The petitioner is at liberty to respond to the said show cause notice within a period of two weeks from date. The concerned authority shall consider the representation and pass an appropriate order after affording the petitioner an opportunity to be heard. We clarify that all rights and contentions of the parties are kept open. The present petition is accordingly disposed of.
Sd/- (VIBHU BAKHRU) CHIEF JUSTICE
Sd/- (K.S. HEMALEKHA) JUDGE
KPS, List No.: 2 Sl No.: 13