HON’BLE SRI JUSTICE P.S. NARAYANA WRIT PETITION No.15354 of 2009 Tuesday the 18th day of August, 2009 Between: N. Kishore Reddy … Petitioner And 1. The Assistant Director of Mines and Geology, Yerraguntla village & Mandal, Kadapa District and another. … Respondents * * * HON’BLE SRI JUSTICE P.S. NARAYANA WRIT PETITION No.15354 of 2009 ORDER: This Court ordered notice before admission on 04.8.2009 and issued Rule Nisi on 11.8.2009 and in view of the fact that counter- affidavit had been filed, the matter was heard and orders had been reserved. Thus, the writ petition is being disposed of. 2. Heard Sri K. Soma Konda Reddy, learned counsel representing the writ petitioner and the learned Government Pleader for Mines and Geology. 3. Sri K. Soma Konda Reddy, the learned counsel representing the writ petitioner had taken this Court through the contents of the affidavit filed in support of the writ petition and the stand taken in the counter- affidavit and would maintain that the stand taken in the counter- affidavit being unsustainable, the action of the first respondent in not issuing the transport permits cannot be sustained. 4. Per contra, the learned Government Pleader for Mines and Geology had pointed out relevant portions of the counter-affidavit filed by the respondents and would maintain that in the light of the same, the relief prayed for in the writ petition cannot be granted. 5. Heard the counsel, perused the respective stands taken in the pleadings of the parties and the material placed before this Court. 6. This writ petition is filed for issue of a writ of Mandamus holding that the action of the first respondent in not issuing transport permits by suspending Lr.No.1551-C/Sand/08, dated 18.7.2009, of the first respondent, as illegal, arbitrary, unreasonable and opposed to the principles of natural justice and further direct the first respondent to issue transport permits by suspending Lr.No.1551-C/Sand/08, dated 18.7.2009, and pass such other suitable orders. 7. It is the case of the writ petitioner that the Joint Collector and Chairman, District Level Sand Committee, Kadapa, published a notice dated 26.11.2008 calling for sealed tenders-cum-public auction for the financial year ending 31.3.2009 and for the second year from 01.4.2009 to 31.3.2010 to quarry the sand from Animela village Reach No.1. The writ petitioner filed sealed tender and participated in the auction and his tender was accepted. The writ petitioner and respondent executed sand lease agreement i.e., Form G-1 on 24.12.2008 and the petitioner deposited a sum of Rs.21,06,000/- towards security for due performance of the agreement. The petitioner had been quarrying sand from the area leased out to him as per the agreement, dated 24.12.2008, and the A.P.M.M.C. Rules, 1966. 8. It is also stated that the first respondent issued notices No.1551- C/Sand/08, dated 10.6.2009 and 15.6.2009 alleging that the transport permits issued for quarrying sand from Animela village, Reach No.1 were utilized for quarrying sand within the limits of Pydikalva village in Papagni River and the sand was utilized for the buildings being constructed for Vemana University, Kadapa, and the transport permit book issued for quarrying sand from Animela village, Reach No.1, was taken from the possession of the person in whose possession it was and later the said person came along with some others and took away the permit book forcibly. It is also stated that the Royalty Inspector, who visited the Reach, noticed that there were 10 pits from which sand was freshly quarried and he estimated the same at 10,134.5 cbm, where as per the permit book permits were issued for a quantity of 55200 cbm. of sand and an explanation was sought in respect of the different of quantity of sand of 45,066 cbm. 9. It is also further stated that the petitioner submitted his explanation within the prescribed time. The petitioner also submitted that the boundaries fixed for Animela, Reach No.1 quarry were obliterated by the cattle etc., which go into the forest area and Papagni River passes to an extent of 3 to 4 kms. and they had been issuing permits to the persons who are quarrying the sand from Animela, Reach No.1. They are also supplying sand to Vemana University. The contractors of Yogi Vemana University are taking sand from the persons belong to Pydikalva village and neighbouring villages, who are illegally quarrying the sand without permits. Since the mining officials are not taking any steps to stop such a transport, the lessees are incurring loss. 10. Further it is stated that on 16.7.2009 the petitioner requested the first respondent to issue transport permit book, but the first respondent replied in Lr.No.1551-C/Sand/08, dated 18.7.2009, that the explanation of the petitioner is not satisfactory and the first respondent had not issued transport permit to the petitioner and further requested the Director of Mines and Geology, Hyderabad, to cancel the lease in favour of the petitioner. 11. It is also stated that the order in Lr.No.1551-C/Sand/08, dated 18.7.2009, of the first respondent is contrary to law and opposed to the principles of natural justice. 12. It is also stated that the petitioner has nothing to do with the quarrying of sand alleged to have been supplied to Vemana University which was quarried within the limits of Pydikalva village. The petitioner had not been issued any transport permits for sand alleged to have been quarried from Pydikalva village. 13. Further it is stated that the petitioner was being issued transport permits for the sand quarried within the limits of Reach No.1 of Animela village only and he has not misused the transport permits in any manner and the petitioner paid a sum of Rs.30.00 lakhs for removing the sand. 14. Further it is stated that Lr.No.1551-C/Sand/08, dated 18.7.2009 and 20.5.2009 of the Assistant Director of Mines and Geology, Kadapa, were not given to the petitioner and he does not know the contents of these letters. The said letters cannot be relied upon behind the back of the petitioner to take any action against the petitioner which were not furnished to the petitioner. Any reliance, which may be placed on such letters, for taking any action would be violative of principles of natural justice. 15. Further it is stated that there is no need or necessity for him to misuse the permits as alleged for the sand quarried from Pydikalva village. There is enough sand for quarrying within the area leased out to the petitioner. The petitioner also stated that the petitioner has to pay the dead rent/seigniorage fee as per the transport permits issued to the petitioner. 16. It is also further stated that as some persons were illegally transporting sand, the petitioner made a complaint to the Joint Collector and Chairman of the Committee on 02.02.2009 and he directed the Tahsildar and C.I. of Police, Vempally to see that the illegal mining is stopped. 17. Further it is stated that in the recent elections to the State Legislature the petitioner and certain others had not supported the member belonging to the ruling party and he is taking a hostile attitude towards them. Further it is stated that the Royalty Inspector in the presence of the petitioner conducted no inspection of Animela, Reach No.1. The pits from which the sand was excavated in Reach No.1 of Animela got obliterated due to time gap of some months between the excavation of sand and the alleged inspection by the Royalty Inspector. He had not noticed the other pits which were obliterated due to lapse of time by passing of cattle, rain water etc. In such circumstances, the petitioner approached this Court by filing the aforesaid writ. 18. In the counter-affidavit filed by the respondents in reply to para 2 it is stated that it is a fact that this office had issued a notification inviting sealed tenders to conduct a public auction for two years, first year ending on 31.3.2009 and second year from 01.4.2009 to 31.3.2010 for quarrying sand from Animela Reach No.1, vide tender Notice No.534/Sand/2007-08, dated 26.11.2008, and published in Saakshi and Hindu newspapers. It is also stated that Sri N. Kishore Reddy had participated in the said public auction on 15.12.2008 before the Joint Collector, Collectorate, Kadapa, and the bid was knocked down in favour of N. Kishore Reddy and he was declared as highest bidder for Rs.21,06,000/-. The District Collector, Kadapa, had issued confirmation orders in favour of N. Kishore Reddy, vide Proc.No.1551/C/Sand/2008, dated 18.12.2008, and addressed a letter requesting the highest bidder to submit necessary documents to execute lease deed and on submission of required documents, respondents executed sand lease and permission was accorded in favour of Sri N. Kishore Reddy for excavation of ordinary sand in Animela Reach No.1 of V.N. Palli Mandal, Kadapa District for a period of two financial years from 24.12.2008 to 31.3.2010 (24.12.2008 to 31.3.2009 and 209-2010). 19. Further it is stated that it is a fact that the Assistant Director of Mines and Geology, Kadapa, reported that while inspecting the sand reach of Pydikalva village of Vallur Mandal, Kadapa District, he had found the transit forms of N. Kishore Reddy, who is the sand leaseholder of Animela Reach-I and also reported that N. Kishore Reddy had been misusing the transit forms issued by this office which were given to Animela Reach No.1 of V.N. Palli Mandal, Kadapa District and using them to lift the sand from Pydikalva village of Vallur Mandal, Kadapa District. The Assistant Director of Mines and Geology, Kadapa, caught hold of the transit books of N. Kishore Reddy at Yogi Vemana University, which were issued for lifting sand from Animela Reach and subsequently some unidentified persons had forcibly taken away the above transit books from the Assistant Director of Mines and Geology, Kadapa. This office had issued show cause notices to N. Kishore Reddy for misusing of sand permits and requested for submission of explanation within seven days. 20. Further it is stated that it is a fact that the lessee N. Kishore Reddy had given reply to the show cause notice, dated 26.6.2009, which was not satisfactory. Further it is averred that the contention of the lessee in connection with the boundaries of Animela Reach-I being destroyed by the cattle etc., is baseless. As per the lease condition (XIV) the lessee should erect and maintain at his own expense boundary pillars of substantial material standing not less than three feet above the surface of the ground at each corner or angle in the line of the boundary of the leased area to him and intervals of not more than three metres along with the boundary as detailed in the plan attached to the lease deed. 21. Further it is averred in para 5 of the counter-affidavit that it is a fact that N. Kishore Reddy had submitted permit application on 16.7.2009, but as per the report of the Assistant Director of Mines and Geology, Kadapa, this office had withheld the permits for misusing sand way bills and utilizing these way bills to assist sand illegal activity of Papagni River, near Pydikalva village of Vallur Mandal, Kadapa District. In view of the above, this office vide letter No.1551/C/Sand/2008, dated 18.7.2009 had informed the petitioner that the permit may not be issued for the reasons stated above. It is also averred that during the course of inspection the Assistant Director of Mines and Geology, Kadapa, at Papagni river near Pydikalva village, Vallur Mandal, Kadapa District, reported to the respondent that N. Kishore Reddy was misusing the sand way bills and utilizing them to assist illegal sand mining at Papagni river near Pydikalva village. 22. It is also stated that it is a fact that the Assistant Director of Mines and Geology, Kadapa, had inspected the Papagni river near Pydikalva village, Vallur Mandal, Kadapa District, to curb the illicit activity of sand at their jurisdiction. At that time he noticed that N. Kishore Reddy had misused the sand way bills and utilized the way bills to assist sand illegal activity at Papagni River and informed the facts to this office to take necessary action against the culprits. 23. Further it is stated that as per the report of the Assistant Director of Mines and Geology, Kadapa, during the course of inspection at the area at Papagni river, near Pydikalva village, Vallur Mandal, Kadapa District, the Assistant Director of Mines and Geology, Kadapa had reported that the misused way bills from N. Kishore Reddy, which was issued for Animela Reach No.1, were seized and a case had been registered at Pendlimarri police station. In the said circumstances, it was stated that the writ petition to be dismissed. 24. These are the respective stands taken by the parties. 25. The proceeding Lr.No.1551-C/Sand/08, dated 18.7.2009 addressed by the Assistant Director of Mines and Geology, Kadapa District, to the writ petitioner reads as hereunder: From To Sri P. Pullaiah, M.Sc.,B.Ed., Sri N. Kishore Reddy, Asst. director of Mines & Geology, Kothur village, Yerraguntla, Kadapa District. Pendlimarri Mandal, Kadapa (Dt.). Lr.No.1551-C/Sand/08 dated 18.7.2009 Sir, Sub:- Mines and Quarries- Auction of sand- leasing out the right of sand quarry for ordinary sand in the Animela Reach-I, Animela village, V.N.Palli Mandal, Kadapa District- Lease deed executed on 24.12.2008 to 31.3.2010- Misuse of sand transit forms- Permit application Dt.16.7.2009- Permit not issue due to misusing sand way bills- Proposed for cancellation of quarry rights- Regarding. Ref:- 1. Permit application of Sri N. Kishore Reddy, Dt.16.7.2009 2. Lr.No.534/Sand/09-10 dated 19.5.2009 & 20.5.2009 of the Assistant Director of Mines and Geology, kadapa. 3. This office notices No.1551-C/Sand/08 dated 10.6.2009 & 15.6.2009. 4. Show cause notice reply of Sri N. Kishore Reddy dated 25.6.2009. 5. This office Lr.No.1551-C/Sand/08 dated 8.7.2009 addressed to the D.M. & G, Hyderabad. *** It is to inform that you are applied for dispatch permit on 16.7.2009 for issue of dispatch permit for ordinary sand in Animela Reach-I, Animela village, V.N.Palli Mandal, Kadapa District vide reference 1st cited. In this connection it is hereby informed you through the reference 2nd cited that the Assistant Director of Mines and Geology, Kadapa informed to this office Sri N. Kishore Reddy misusing he sand way bills and utilized these sand way bills to assist sand illegal activity at Papagni river, near Paidikalava village, Vallur Mandal, Kadapa District and requested to take necessary action upon he lease holder. Accordingly vide reference 3rd cited this office issued notice to Sri N. Kishore Reddy, as to why action should not be taken to cancel the sand quarry lease under misuse of way bills as per rules 26 & 27 of APMMC Rules 1966 and to give suitable reply to this office within 7 days from the date of receipt of the notice. In response to this office notice, Sri N. Kishore Reddy has given reply to this Office on 25.6.2009, which it is not satisfactory. Further vide reference 5th cited this office requested the Director of Mines and Geology, Hyderabad may kindly issue necessary orders for cancellation of sand quarry lease in Animela Reach-I, Animela village, V.N. Palli Mandal, Kadapa District. In view of the circumstances stated above the transport permit for lifting of sand may not be considered. Yours faithfully, Sd/- xx xx xx xx Assistant Director of Mines and Geology, Yerraguntla. 26. The sand lease agreement in Form-G1 also had been placed before this Court. The show cause notice dated 15.6.2009 reads as hereunder: GOVERNMENT OF ANDHRA PRADESH DEPARTMENT OF MINES AND GEOLOGY From To Sri Y. Venkata Reddy, M.Sc., Sri N. Kishore Reddy, Asst. Director (FAC), Kothur village, Mines & Geology, Pendlimarri village, Yerraguntla, Kadapa Dist. Kadapa District. Show cause notice No.1551-C/Sand/08, dt.15.6.2009 Sub:- Mines and Geology- Sand- Office of Asst. Director of Mines and Geology, yerraguntla- Animela Reach-01- Unauthorised use of transport permits- show cause notice- Regarding. Ref:- 1. Lr.No.534/Sand/09-10, dt.19.5.2009 of Asst. Director of Mines & Geology, Kadapa. 2. Lr.No.534/Sand/09-10, dated 20.5.2009 of Asst.Director of Mines and Geology, Kadapa. *** Find the above subject and references. You are hereby informed that it has come to the notice during the check that as per the above reference, that the sand transport permits issued by the officer of this office in respect of Animela Sand Reach 01 are utilized unauthorisedly for transporting sand from River Papagni within the limits of Pydikalva village for Nagarjuna Construction company for constructing the building within the campus of Yogi Vemana University and thereby committed an offence. In that connection, the transport permits book issued by this officer was taken from the possession of the person issuing the transport permit. Later the person from whom the transport permit of Animela reach were taken care with some others surrounded the Asst. Director, Mines and Geology and the Technical staff of Kadapa abused and took back the transport permits. Later a complaint was given at Pendlimarri Police Station against the individual who was unauthorisedly issuing transport permits of Animela reach. The same was informed to this office for taking necessary action against Animela Reach-01. The Royalty Inspector of this office inspected Animela Reach 01 in June in presence and noticed 10 fresh pits in your quarry. The Royalty Inspector measured the said pits and gave the details. Sl.No. Length Width Depth Quantity 1 25 Mts. 15 Mts. 2 Mts. 750 cbm 2 45 Mts. 18 Mts. 3 Mts. 2430 cbm 3 50 Mts. 20 Mts. 5 Mts. 5000 cbm 4 15 Mts. 5 Mts 1.5 Mts. 1125 cbm 5 18 Mts. 3 Mts. 2 Mts. 108 cbm 6 20 Mts. 2 Mts. 1 Mts. 40 cbm 7 15 Mts. 5 Mts. 2 Mts. 150 cbm 8 32 Mts. 4 Mts. 3 Mts. 384 cbm 9 35 Mts. 5 Mts. 2 Mts. 350 cbm 10 45 Mts. 6 Mts. 3 Mts. 810 cbm Total quantity 10,134.5 cbm The Royalty Inspector estimated the quantity after measuring at 10,134 cbm. As per the transport permits taken from this office up to 29.5.2009 for Animela Reach 01 you have issued permits for a quantity of 55,200 cbm. There is a difference of 45,066 cbm between the permits said to have been used for transport the quantity of sand 55,200 whereas the Royalty Inspector who inspected in your presence estimated from the pits at 10,134 cbm. So from where you have transported the quantity of 45,066 cbm. So from this it is clear that you are misusing the permits taken from this office. It is clear from this that you are misusing the transport permits taken from this office for transporting unauthorisedly excavated sand by enclosing the transport permits and it is proved as per the material available with us. You are requested to explain the following: 1. Furnish the details from where you have transported the quantity of 45,066 cbm which is nsot from Animela Reach 01. 2. What happened to the transport permits issued by our officer. If they are with you surrender them to our office, if not, give proper explanation about them. You are requested to furnish your reply within 7 days from the date of receipt of this notice as to why your lease of Animela Reach 01 should not be cancelled as per the Minor Mineral Concession Rules, 1966. You are hereby informed that if you do not furnish the reply it would be recommended to the Director, Hyderabad to cancel your quarry as per the Andhra Pradesh Minor Mineral Concession Rules, 1966. In view of what is stated above you are informed to furnish your reply within 7 days as to why the sand quarry Animela Reach 01 should not be cancelled as per the Andhra Pradesh Minor Mineral Concession Rules, 1966. If no reply is furnished, the proper action would be taken as per the Andhra Pradesh Minor Mineral Concession Rules, 1966, and you are informed accordingly. Yours faithfully, Sd/- xx xx xx Asst. Director, Department of Mines & Geology, Yerraguntla, Kadapa District. 27. The reply given to the show cause notice dated 15.6.2009 reads as hereunder: From To Sri N. Kishore Reddy Sri Y. Venkata Reddy, M.SC., Kothuru village, Assistant Director (F.A.C), Pendlimarri Mandal, Department of Mines & Geology Kadapa District. Yerraguntla Mandal, Kadapa Dt. Sir, Sub:- Mines and Geology- Animela Sand Quarry- Veerapunayunipalle Mandal, reply to the notices of Assistant Director, yerraguntla. Ref:- Show cause notice No.151-C/Sand/08, dated 10.6.2009 and 15.6.2009 received on 24.6.209. -: o0o:- You are informed that the two notices referred to above were received by me on 24.6.2009 only. My reply is that after acceptance of the tender you had informed the boundaries of Animela Reach-I quarry. You had also showed the marking of the area. After entering into the agreement it took some time for us to mark out the ways for the quarry. Later the cattle belonging to the neighbouring villages was passing through the quarry to the nearby hillock for grazing. The boundaries fixed by you got obliterated and could not be seen. So we are issuing the permits for the sand excavated any where within the boundaries. River Papagni passes through four or five K.M. length of Animela Gram Panchayat. Before you called for tenders for Animela Reach-I there were ten to fifteen openings to it. To close the ten to fifteen ways it was a difficult job. So we are issuing permits of Animela Reach-I at the beginning and at the end. Like that we are transporting sand in tractor to Yogi Vemana University. The University is getting sand by tractors without any permit from the nearby Pydikalva village. Yogi Vemana University is getting about 100 to 150 tractors of sand from other areas and Pydikalva village unauthorizedly without any permits. The mining authorities of Kadapa are not taking any action to stop the same. Because of that the contractors are incurring loss. So please note the same. I complained over to the Joint Collector about the illegal excavation of the sand. I submit that I have no connection whatsoever about the removing of sand from Pydikalva village. I have stated the existing fact. Yours faithfully, Sd/- xx xx xx xx 28. The representation-dated 02.02.2009 submitted by the petitioner is as under: Dated: 2.2.2009 To The Joint Collector, Kadapa. Representation submitted by N. Kishore Reddy, Sand contractor of Animela Reach-I. Sir, I am allotted the Animela Reach-I sand quarry by the Government at the public auction last December. I have paid Rs.21,06,000/- to the Government. River Papagni is on either side of my quarry. Every day about 300 tractors are illegally transporting sand without paying any royalty to the works in Pulivendula. Like that daily 100 tractors are used to transport sand illegally without paying any royalty from Gandi, Addalamarri, Veerannagattupalli, Chakrayapet Mandal to the works in I.I.I.T. in Idupulapaya. Because of the illegal mining of sand I, as a contractor, am incurring loss. About 3 days back he Tahsildar of Vempally Mandal seized 20 tractors on a single day for transporting sand illegally and levied penalty of Rs.5,000/- to Rs.6,000/-. The above attitude shows how illegal transport of sand is taking place. Sir, I humbly request you to issue suitable instructions to the Mining Department, to the Revenue and Police Officials of Vempalli Mandal and Chakrayapeta Mandal to stop the illegal transport of sand. Yours faithfully, Sd/- xx xx xx N. Kishore Reddy, Sand Contractor, Animela Reach-I, Veerapunayunipalle Mandal. 29. The respective stands taken by the parties already had been referred to above. As can be seen from Lr.1551-C/Sand/08, dated 18.7.2009 the following references had been made. Ref:- 1. Permit application of Sri N. Kishore Reddy, Dt.16.7.2009 2. Lr.No.534/Sand/09-10 dated 19.5.2009 & 20.5.2009 of the Assistant Director of Mines and Geology, kadapa. 3. This office notices No.1551-C/Sand/08 dated 10.6.2009 & 15.6.2009. 4. Show cause notice reply of Sri N. Kishore Reddy dated 25.6.2009. 5. This office Lr.No.1551-C/Sand/08 dated 8.7.2009 addressed to the D.M. & G, Hyderabad. While concluding it is specified that further vide reference 5th cited this office requested the Director of Mines and Geology, Hyderabad may kindly issue necessary orders for cancellation of sand quarry lease in Animela each-I, Animela village, V.N. Palli Mandal, Kadapa District. In view of