WP(C)/27588/2026 of SUBHRANSHU SEKHAR PADHI Vs STATE OF ODISHA on 8 September 2026

ORDER

08.09.2026

01.

1. The petitioner, with a prayer to direct the opposite parties to execute fresh agreement in terms of Rule 27A of the Odisha Minor Minerals Concession Rules, 2016 (for short, “OMMC Rules”) as amended by virtue of the Odisha Minor Minerals Concession (Amendment) Rules, 2025, by extending period of lease during which quarrying activity of Balipokhari Sand Quarry remained non-operational, has filed the instant writ petition.

1.1. Having participated in the auction advertised for Balipokhari Sand Quarry, Jagannathprasad in the District of Bhadrak, the petitioner was declared successful and executed a lease deed on 03.06.2021. In order to comply with the statutory requirements under the OMMC Rules, the petitioner applied for environmental clearance which was granted by the State

Pollution Control Board on 18.03.2026 under the provisions of the Water (Prevention and Control of Pollution) Act, 1974 and the Air (Prevention and Control of Pollution) Act, 1981. Such belated certification and non-supply of transit permit in Form-‘Y’ at different times placed the petitioner in difficulty to operate the quarry.

1.2. This apart, on account of the Odisha Minor Mineral Concession (Amendment) Rules, 2025, introducing Rule 27A— Transitory provisions, the petitioner opted for migration to e-lottery regime from e-auction system on 06.02.2026. Such change in policy was in doldrums which resulted in the sand quarry remained non-operational for a considerable length of period. In order to consider the plight of the petitioner, representations dated 13.04.2026, 15.04.2026 and 18.05.2026 were submitted to the Deputy Director of Mines, Bhadrak Circle, Bhadrak (opposite party No.2), which remained unattended to which gave rise to filing of this writ petition.

2. Mr. Soumya Ranjan Mohanty, learned Advocate appearing for the petitioner submitted that though the option was exercised to migrate from e-auction system to e-lottery regime, the State Government took a decision to implement such policy, introduced by virtue of the Odisha Minor Minerals Concession (Amendment) Rules, 2025 being notified on 02.02.2026. It is manifest from the letter bearing No.SM-MC3-MISC-0003-2026/7289/S&M, dated 21.07.2026 issued by the Additional Secretary to Government in Steel and Mines Department that the Government have been pleased to go with the e-lottery system for grant of minor mineral concessions instead of reintroducing the e-auction system. He submitted that the lease of sand quarry remained valid till 02.06.2026 and due to circumstances stated hereinabove, the petitioner was deprived of operating said sand quarry to the full extent during subsistence of five years in terms of Rule 43 of the OMMC Rules.

3. Mr. Sanjay Rath, learned Additional Government Advocate, upon receiving instructions submitted that it is admitted fact that the petitioner has exercised option on 28.02.2026 to migrate from e-auction system to e-lottery regime as required under the transitory provision contained in Rule 27A of the OMMC Rules and he submitted an affidavit instead of submitting “fresh agreement”. Despite such fact, the competent authority approved the e-lottery system on 08.04.2026 in i4MS portal for migrant from e-auction to e- lottery regime. He vehemently contended that since the petitioner/lessee neither submitted a fresh agreement nor applied for e-transit pass or to continue with the existing lease before the competent authority, the writ petition lacks merit. Hence, he prayed for dismissal of the writ petition.

4. Heard Mr. Soumya Ranjan Mohanty, learned Advocate for the petitioner and Mr. Sanjay Rath, learned Additional Government Advocate for the State-Opposite Parties.

5. Perusal of record reveals that the petitioner was granted quarry lease for a period of five years from Financial Year

2020-21 to 2025-26. Perusal of the documents enclosed with the writ petition reveals that the consent order was issued from the Regional Office, Balasore, the State Pollution Control Board, Odisha on 18.03.2026, which specifies the period of validity as 01.04.2026 to 02.06.2026. A document issued by the Ministry of Environment, Forest and Climate Change (the State Environment Impact Assessment Authority), Odisha reveals that the petitioner was allowed to extract sand from Balipokhari Sand Quarry, Jagannathprasad under Bhandaripokhari Tahasil in the district of Bhadrak which was granted on 01.05.2025.

6. As it appears, there was delay in issue of statutory permission to the petitioner belatedly. A bare reading of letter dated 21.07.2026 makes it apparent that the decision to implement the amendment carried out in the Odisha Minor Mineral Concession Rules, 2016, was under confused state. It is given to understand by letter dated 21.07.2026 issued by the Additional Secretary to Government in Steel and Mines Department, Government of Odisha that the implementation of transition from e-auction system to e-lottery regime has been effected belatedly. Provisions of Rule 27A dealing with Transitory Provision, inserted by virtue of Odisha Minor Mineral Concession (Amendment) Rules, 2025, necessitates lessee to exercise the option for migration from e-lottery regime; nevertheless, said provision requires him to execute a fresh agreement “in such form as may be prescribed and shall be governed by all terms and conditions applicable to leases granted under the amended rules”. A bare reading of the said provision gives an idea that such agreement is to be executed between the lessee and the competent authority of the Government.

7. Be that as it may, this Court is afraid to issue writ of mandamus to the opposite parties to execute the agreement/fresh agreement by extending the period of lease originally granted. The period during which the petitioner could not operate the sand quarry due the circumstances can very well be appreciated by the competent authority of the Government by invoking Rule 64 of the OMMC Rules. Having glossed through the OMMC Rules, 2016, this Court noticed Rule 64 of the said OMMC Rules, which reads as follows:

“64. Power of the Government to relax the Rules.—

The Government may, in the interest of mineral development, relax any of the provisions of these rules in deserving cases in such manner as they deem proper.”

8. In view of such clear provision contained in Rule 64 of the OMMC Rules conferring the power on the Government (competent authority) to relax the rigour of provisions of OMMC Rules, it is open for the petitioner to approach the competent authority/Government for invocation of said provision of relaxation in view of Rule 64 of the OMMC Rules. Hence, liberty is reserved to the petitioner, if so advised, to invoke the provisions of Rule 64 of the OMMC Rules in accordance with law. In the event, the petitioner makes comprehensive representation(s) along with the copies of the representations already submitted, as stated above, to the Deputy Director of Mines, Bhadrak Circle, Bhadrak (opposite party No.2), the same shall be considered in accordance with law taking a pragmatic view. As an abundant caution it is impressed upon that this Court has not expressed any opinion with regard to the merit of the case.

9. With the above observation (s) and direction, the writ petition stands disposed of.

(Harish Tandon)

Chief Justice

(M.S. Raman)

Judge

Bichi

Digitally Signed Signed by: BICHITRANANDA SAHOO Designation: Secretary Reason: Authentication Location: Orissa High Court, Cuttack Date: 10-Sep-2026 10:19:56 Signature Not Verified