Attar Fullers Earth Represented By Its Partner Vs State of Karnataka (Karnataka High Court)
The petitioners sought multiple reliefs challenging the imposition and recovery of penalty by the Senior Geologist. They requested quashing of the penalty order dated 03.01.2025, refund of Rs.2,63,250 allegedly recovered under coercion, and directions restraining authorities from taking action against legally transported minor minerals when supported by proper documents.
The petitioners contended that the penalty was collected without any order or adjudication establishing any violation. They stated that they were compelled to pay the penalty to secure the release of three detained vehicles. According to them, the Deputy Director, Department of Mines and Geology, had issued a valid working permit under Rule 3A(b) of the Karnataka Minor Mineral Concession (Amendment) Rules, 2020, authorizing operations on land in Survey No. 99 for extraction of Fullers Earth during the period 18.06.2024 to 17.06.2025. Petitioner No.1 was engaged in business involving this mineral, sourcing it from authorized leaseholders. Petitioner No.1 also possessed its own land and was registered with the GST authorities. Petitioner No.2 was similarly engaged in processing and selling the mineral and had leased nearby land. Petitioner No.3 operated under similar circumstances.
The petitioners stated that Petitioner No.1 purchased 105 tons of Fullers Earth from an authorized permission holder and received three Mineral Dispatch Release Orders dated 02.01.2025. Petitioner No.2 then bought the material from Petitioner No.1, processed it, and sold it to Petitioner No.3. On 03.01.2025, vehicles carrying the processed material from Petitioner No.2’s area were intercepted. The petitioners claimed that they produced all required documents but the Senior Geologist nevertheless demanded a penalty of Rs.87,750 per vehicle under Section 4(1) of the Mines and Minerals (Development & Regulation) Act, 1957 read with Rules 42 and 43 of the Karnataka Minor Mineral Concession Rules, 1994. They stated that the vehicles were seized without a valid order and were not released until the penalty was paid on 06.01.2025, after nearly three days of detention.
