New Delhi: The Supreme Court has held that the Rajasthan government will take back possession of a mine from Gotan Limestone Khanji Udyog Pvt Ltd (GLKUPL), which was transferred to cement major Ultra Tech, saying that competent authority was "misled" by concealing the real transaction.
The apex court set aside the order of the Rajasthan High Court which had dismissed the state government's plea to restore to it the possession of a mine, located in 10 sq km area near Gotan town in Nagaur district, the lease of which was transferred in contravention of rules to Ultra Tech Cement Ltd (UTCL), also known as Ultra Tech.
It also directed the Rajasthan government to frame and notify its policy with regard to transfer of mining lease within one month and said, "Till such a decision is taken, status quo may be maintained."
Holding that the Rajasthan government rightly exercised its power to cancel the lease transferred in violation of rules, a bench of Justices A R Dave and A K Goel said, "In the present case, it was not a case of mere transfer of shareholding or change of Directors or even a routine merger, but use of device to unauthorisedly acquire mining lease by misleading the competent authority by concealing the real transaction.
"Real transaction is of impermissible sale of the lease which was the only asset of the company. If true facts that lease was to be sold were disclosed, power to permit transfer of lease may not have been exercised. Lease could not be transferred to make profit. Thus, the doctrine of lifting the corporate veil should be invoked," the bench said.
"The public power of permitting transfer of lease could not be used to benefit a private operator, who sells its rights in natural resources given to it by the State, in violation of law," the bench said.
The state's Mines Department on December 16, 2014 had cancelled the mining lease granted in favour of GLKUPL, which was set aside by the single judge bench of the high court on March 25, 2015.
The Rajasthan government's appeal against the single judge order was also dismissed on May 14, 2015, by a division bench which said there was no contravention of the 1986 rules in the transfer of the lease of the mine in question.
