IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE NINETEENTH DAY OF OCTOBER TWO THOUSAND AND TEN PRESENT THE HON'BLE SRI JUSTICE C.V. RAMULU WRIT PETITION No.9361 of 2006 BETWEEN S. Shoban Babu. ... PETITIONER AND The Government of Andhra Pradesh rep. by its Secretary, Department of Industries and Commerce, Secretariat, Hyderabad and two others. ...RESPONDENTS Counsel for the Petitioner: M/S. N. SHOBA Counsel for the Respondents: GP FOR MINES AND GEOLOGY The Court made the following order: ORDER: This writ petition is filed seeking Mandamus to declare the action of the respondents in collecting excess royalty and in not computing the royalty on Laterite as per Rule 64-D of Mineral Concession Rules, 1960 read with Mines and Mineral (Development & Regulation) Act, 1957 and as per the guidelines issued by the Government of India as arbitrary, illegal and violative of Rule 64-D of Mineral Concession Rules, 1960 read with Mines and Mineral (Development & Regulation) Act, 1957 and consequently direct the third respondent to refund the excess collected amount of royalty in pursuance of Mining Lease granted in G.O.Ms.No.109 Industries & Commerce (M.III) Department dated 29.04.2004 in Sy.Nos.10/P, 11/P, 12/P, 13/1, 13/2, 14/P, 15/1, 15/2P, 17/P, 18/1, 18/2, 18/3B and 18/3C over an extent of Ac.30.64 (12.399 Hects) situated at Ventada Village, Gokavaram Panchayat, Prathipadu Mandal, East Godavari District. 2. The grievance of the petitioner appears to be that the third respondent has collected excess royalty in pursuance of mining lease granted to the petitioner in G.O.Ms.No.109 Industries & Commerce (M.III) Department dated 29.04.2004. There is no necessity to go into all the details. 3. The third respondent filed a detailed counter affidavit wherein it is stated that as per the purchase order of M/s. Maheswari Minerals the leaseholder Sri Soban Babu is selling Laterite @ Rs.84/- per metric ton. Accordingly, the sale price of Laterite is Rs.84/- + 20% addition i.e. Rs.16.80 = 100.80, royalty computed at 20% to be paid Rs.20.16. The respondents are collecting Rs.20/- per Metric ton from the leaseholder Sri S. Soban Babu. The second respondent vide Circular Memo.No.33932/MRI/98, dt.8-7-2003 has informed that the Government of India has issued certain guidelines under Rule 64(d) of the M.C. Rules, 1960 for computing the royalty on ad valorem basis. The Indian Bureau of Mines monthly statistics of mineral production contains State-wise total value of each mineral produced during a month in a State. The State-wise average value for different individual mineral as published by I.B.M. in the monthly statistics of mineral production shall be the benchmark for computation of royalty by the concerned State Government in respect of any mineral produced any time during a month in any mine in the State. For the purpose of computation of royalty the concerned State Government shall add 20% to the benchmark value. This value shall be reckoned to be the sale price for the purpose of computation of royalty. The value of the minerals published in the latest published issue of monthly statistics of mineral production will be deemed to be applicable for the mineral mined in the previous month, irrespective of when the royalty actual accrues. If for a particular mineral the information is not published in a particular issue, the last information available for that mineral in the State in the previous issue shall be referred, failing which the latest published information for the mineral in all India shall be referred. 4. It is further stated that the second respondent has instructed to follow the guidelines issued by the Government of India for computing royalty on ad valorem basis. As per the said orders, the Mineral Revenue Assessments for the year 2004-2005 and 2005-2006 have been revised and submitted to the Deputy Director of Mines & Geology, Kakinada for approval. After approval of the said assessment by the Deputy Director of Mines & Geology, Kakinada the excess amounts available in the credit of the lessee Sri S. Soban Babu will be adjusted for future permits. Recording the above, the writ petition is disposed of. There shall be no order as to costs. ____________ C.V. RAMULU, J October 19, 2010 DSK