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TMI BlogUnraveling the Mineral Rights Regime: The Supreme Court's Landmark JudgmentX X X X Extracts X X X X X X X X Extracts X X X X ..... ral rights in the country. The case delved into the intricate interplay between the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) and the constitutional framework, shedding light on the complex issues surrounding mineral rights, taxation, and the regulatory powers of the Centre and States. Arguments Presented The petitioners challenged the validity of Section 9 of the MMDR A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mineral rights under various land tenure systems, such as the Zamindari system, Ryotwari system, and the Mahalwari system, and their subsequent abolition post-independence. The Court observed that mineral rights were initially vested in the State, and the legislative intent was to bring the entire field of regulation of mines and minerals under the control of the Central Government. This was evid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of natural resources. The Court concluded that royalties are not taxes but rather a form of compensation or consideration for the extraction of minerals, which are owned by the State. This compensation is akin to the concept of economic rent, where the owner of a scarce resource is entitled to a share of the profits derived from its exploitation. Analysis and Decision by the Court The Court up ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l rights in India. It has affirmed the Centre's exclusive legislative competence to regulate mines and minerals, including the power to levy royalties as compensation for the depletion of natural resources owned by the State. The Court has also delineated the boundaries between the Centre's and States' powers, ensuring a harmonious interpretation of the constitutional provisions and th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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