1 APHC010450982022 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3458] MONDAY, THE SIXTH DAY OF OCTOBER TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SMT JUSTICE KIRANMAYEE MANDAVA WRIT PETITION NOS: 27763 & 5445 OF 2022 WRIT PETITION NO: 27763 OF 2022 Between: 1. M/S. VETRIVEL MINERALS (V.V. MINERALS), PLOT NO.A-3, PHASE- IV, NEAR ADMINISTRATIVE BUILDING, VSEZ, DUVVADA, VISAKHAPATNAM, ANDHRA PRADESH, REP. BY ITS AUTHORISED SIGNATORY AND MANAGER, MR. EMMANUEL GNANA HENRY. ...PETITIONER AND 1. THE UNION OF INDIA, MINISTRY OF MINES, SHASTRIBHAWAN, DR. RAJENDRA PRASAD ROAD, NEW DELHI -110001 REP. BY ITS SECRETARY, 2. THE STATE OF ANDHRA PRADESH, REP. BY ITS SECRETARY, DEPARTMENT OF MINES AND GEOLOGY, A.P. SECRETARIAT, VELAGAPUDI, AMARAVATI. 3. THE DIRECTOR OF MINES AND GEOLOGY, GOVERNMENT OF ANDHRA PRADESH, SRI ANJANEYA TOWERS, D.NO. 7-104, B- BLOCK, 5TH AND 6TH FLOORS, VIJAYAWADA, IBRAHIMPATNAM, ANDHRA PRADESH 521456 4. ANDHRA PRADESH MINERAL DEVELOPMENT CORPORATION LTD, D.NO.294/MD, 100FT. ROAD, KANURU, VIJAYAWADA - 521 137, ANDHRA PRADESH. REP. BY ITS VICE CHAIRMAN AND MANAGING DIRECTOR, 5. THE ASSISTANT DIRECTOR OF MINES AND GEOLOGY, CHINNABONDILIPURAM, NEAR TUPAKULA BUILDINGS, SRIKAKULAM- 532 001. 6. M/S TRANSWORLD GARNET INDIA PRIVATE LIMITED, A COMPANY INCORPORATED UNDER COMPANIES, HAVING REGISTERED 2 OFFICE AT NO.34, M.G.R. ROAD, KALAKSHETRA COLONY, BESANT NAGAR, CHENNAI, REP. BY ITS MANAGING DIRECTOR. ...RESPONDENT(S): Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased topleased to issue a Writ, order or Direction more particularly in the nature of WRIT OF MANDAMUS declaring the action of the 3rd respondent in the alleged confiscation of minerals on 21-11-2018 as well as Memo No.4337687/D1-1/2021 dt.08-03-2021 under which a Show Cause Notice was issued seeking explanation why the confiscated material should not be shifted to the custody of 4th respondent as well as the Mediator Nama Dt.11-05-2021 under which the confiscated minerals said to have been shifted to the custody of 4th respondent, even without issuing any notice to the petitioner though the minerals were said to have been seized from its premises on 21-11-2018 as well as under Memo dt.08-03- 2021, as being illegal, arbitrary and in violation of provisions of Sections 21 and 23 (c) of Mines and Minerals (Development and Regulation) Act, 1957 and in violation of Rules 8 to 12 of The Andhra Pradesh Mineral Dealers Rules, 2017 as notified in G.O.Ms.No.17, Industries and Commerce (M-II) Department, dated M.04.2018 and consequently to set aside the alleged confiscation of minerals on 11.05.2021 under a mediator report in the interest of justiceand pass IA NO: 1 OF 2022 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased pleased to suspend the operation of Memo No.4337687/D1-1/2021 dt.08- 03- 2021 issued by the 3rd respondent and the Mediator Nama dt.11-05- 2021 issued by the 5th respondent pending disposal of the Writ petition and pass IA NO: 1 OF 2023 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased Pleased to receive the counter copies on record by allowing the leave petition in the above writ petition and pass Counsel for the Petitioner: 1. SUDHAKARA RAO AMBATI Counsel for the Respondent(S): 1. VIJAYA KUMAR SATA 2. N JEEVAN KUMAR 3 3. GP FOR MINES AND GEOLOGY WRIT PETITION NO: 5445 OF 2022 Between: 1. M/S. VETRIVEL MINERALS (V.V. MINERALS), PLOT NO.A-3, PHASE- IV, NEAR ADMINISTRATIVE BUILDING, VSEZ, DUVVADA, VISAKHAPATNAM, ANDHRA PRADESH, REP. BY ITS AUTHORISED SIGNATORY AN.D MANAGER, MR. EMMANUEL GNANA HENRY. ...PETITIONER AND 1. THE GOVERNMENT OF INDIA, MINISTRY OF MINES, SHASTRI BHAWAN, DR. RAJENDRA PRASAD ROAD, NEW DELHI -110001 REP. BY ITS SECRETARY, 2. THE GOVERNMENT OF ANDHRA PRADESH, REP. BY ITS SECRETARY, DEPARTMENT OF MINES AND GEOLOGY, A.P. SECRETARIAT, VELAGAPUDI, AMARAVATI. 3. THE DIRECTOR OF MINES AND GEOLOGY GOVERNMENT OF ANDHRA PRADESH, SRI ANJANEYA TOWERS, D.NO. 7-104, B- BLOCK, 5TH 866TH FLOORS, VIJAYAWADA, IBRAHIMPATNAM, ANDHRA PRADESH 521456 4. THE VICE CHAIRMAN AND MANAGING DIRECTOR, THE ANDHRA PRADESH MINERAL DEVELOPMENT CORPORATION LTD., D.NO.294/MD, 100FT. ROAD, KANURU, VIJAYAWADA - 521 137, ANDHRA PRADESH. 5. THE ASSISTANT DIRECTOR OF MINES AND GEOLOGY, CHINNA BONDILIPURAM, NEAR TUPAKULA BUILDINGS, SRIKAKULAM- 532 001. 6. M/S TRANSWORLD GARNET INDIA PRIVATE LIMITED, A COMPANY INCORPORATED UNDER COMPANIES, HAVING REGISTERED OFFICE AT NO.34, M.G.R. ROAD, KALAKSHETRA COLONY, BESANT NAGAR, CHENNAI, REP. BY ITS MANAGING DIRECTOR. 7. THE TRIMEX SANDS PVT LTD, TRIMEX TOWERS NO.1,SUBBARAYA AVENUEC.P.RAMASWAMY ROAD,ALWARPET,CHENNAI 600018,TAMIL NADU STATE, REP. BY ITS MANAGING DIRECTOR, R7 IS IMPLEADED AS PER C.O.DT.23/3/2022 IN IA.NO.3/2022. ...RESPONDENT(S): 4 Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to pleased to issue a Writ, order or Direction more particularly in the nature of WRIT OF MANDAMUS to declare the action of the 4th Respondent in issuing E-TENDER-CUM-E-AUCTION for processing of Beach Sand Minerals in Srikakulam District, Andhra Pradesh vide Tender No.APMDC/HO/PandC/ BSM/2021-22/1834, dated 01.02.2022 to auction 1,45,280 MTs of tailings on which royalty has been paid by the 6th Respondent from whom the Petitioner purchased these tailings, as illegal, arbitrary and violative of Article 14, 19 (1)(g) and Article 304 of the Constitution of India and violative of the provisions of the MMDR Act, 2016 and the Rules framed thereunder, consequently direct the 4th respondent to issue transit passes/permits as per the representations of the petitioner dated 31.01.2022 forthwith and pass IA NO: 1 OF 2022 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased pleased to direct the Respondents 3 to 5 to issue Transit Passes/ Permissions to the Petitioner to transmit a quantity of 1,45,280 MTs of Tailings as per the representation dated 31.01.2022, pending disposal of the Writ petition and pass IA NO: 2 OF 2022 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased pleased to suspend the E-TENDER-CUM-E-AUCTION for processing of Beach Sand Minerals in Srikakulam District, Andhra Pradesh vide Tender No.APMDC/ HO/PandC/BSM/2021-22/ 1834, dated 01.02.2022 issued by the 4th Respondent, pending disposal of the Writ petition and to pass IA NO: 3 OF 2022 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased To permit the petitioner to implead the proposed respondent No.7 as Respondent No.7 in I.A.Nos.1/2022 and 2/2022 as well as in W.P.No.5445/ 2002 and pass Counsel for the Petitioner: 1. SUDHAKARA RAO AMBATI Counsel for the Respondent(S): 1. VIJAYA KUMAR SATA 5 2. N JEEVAN KUMAR 3. GP FOR MINES AND GEOLOGY THE HONOURABLE SMT JUSTICE KIRANMAYEE MANDAVA WRIT PETITION NOS: 27763 & 5445 OF 2022 The Court made the following common order: Since the issues involved in the Writ Petitions are one and the same, it is appropriate to dispose of the cases by way of a ‘Common Order’. 2. Heard Sri Sudhakara Rao Ambati, learned counsel for the petitioner(s), Smt. Sudeepthi Potluri, learned Assistant Government Pleader for Mines and Geology and Sri N.Jeevan Kumar, learned counsel for unofficial respondents. 3. The petitioner is a mineral dealer having registered mineral dealer license, issued by the 1st respondent dated 08.08.2015. The petitioner is engaged in the business of purchase and sale (domestic and export) of ilmenite and other minerals. The petitioner purchases magnetic and non magnetic tailings from third parties, and after purchase, it separates ilmenite and other minerals from such magnetic and non magnetic tailings, it sells them both in domestic market and through export sales. 4. The grievance of the petitioner is that the respondents have passed the impugned proceedings in violation of the provisions of Sec.23(C) of Mines and Minerals (Development and Regulation) Act, 1957, and in violation 6 of Rules 8 to 12 of A.P. Mineral Dealers Rules, 2017 without affording an opportunity of hearing to the petitioner. 5. It is contended that vide the impugned show-cause notice dated 08-03-2021, the petitioner was asked to show cause as to why the minerals confiscated on 21-11-2018, under which a show cause notice was issued shall not be shifted to the custody of the 4th respondent and the Mediator Nama under which the stocks were handed over to the 4th respondent. 6. It is contended that out of list of 6 minerals that were stated to have been seized under the impugned proceedings belong to the petitioner, and are under the physical custody of the petitioner. 7. It is contended that the 6th respondent has mining lease for Garnet valid up to 2032. The lease deed provides for the following conditions: “i. If, while mining garnet, the lessee comes across deposits of any prescribed substances/atomic minerals, the same shall be disposed of any after obtaining a license from the Department of Atomic Energy [Working of Mines, Minerals and Handling of Prescribed Substances] Rules, 1984. ii. The tailings containing the prescribed substances shall be disposed of only to another entity which holds a valid license under the aforesaid Rules to process/separate the prescribed substances.” 8. The petitioner had placed purchase orders in accordance with the terms of the supply agreement dated 02.09.2011 on respondent No.6 for supply of 83,000 MTs of Garnet alean tailing, and 1,60,400 MTs of non-magnetic tailings. The 6th respondent obtained permission on 13.04.2018 7 for dispatch of the 2,43,400 Mts of tailings after giving the custody of the said minerals to the petitioner. After separation of the minerals from the non-magnetic tailings, the petitioner kept the balance quantity of minerals at petitioner’s factory premises. As the respondents have not issued transit passes permits, the petitioner is unable to run its business, despite payment of all the monies to respondent No.6, the petitioner had suffered loss of income. It is contended that respondent No.6 obtained permits for dispatch of 2,43,400 MTs. Petitioner has been requesting for issuance of transit passes for disposal 2,400 MTs. of Silimanite, 4,340 MT. of Rutire. The 3rd respondent has issued instructions to the 5th respondent to issue transit passes. However the same were not issued despite representations in the said regard. However the respondents without issuing transit passes issued notification for auction of these minerals. It is contended that the petitioner had purchased the minerals from the 6th respondent after due permission of the respondents. 10. Aggrieved by the same, the petitioner approached this Court and filed a writ petition in W.P.No.21130 of 2019. The said writ petition was disposed of directing the respondents to consider the representation of the petitioner and pass appropriate orders. Despite the said directions of this Court, the respondents have not passed any order, thus the Writ Petition No. 5445 of 2022 is filed. 12. The petitioner contends that the petitioner was put in dark about the alleged confiscation dated 21-11-2018, show-cause notice dated. 8 08-03-2021, and the Mediator Nama dated 11-05-2021, and the 6th respondent after taking huge sums. 13. The learned counsel appearing for the petitioner(s) relies on the decision of this Court in W.P.No.18600 of 2010 and the decision of Apex Court in Gem Granites Vs. State of T.N1. 14. The 3rd respondent filed counter affidavit stating that after issuing show cause notice to the 6th respondent, the mineral confiscated on 21.11.2018 was handed over to M/s. APMDC Ltd. And further contended that the 6th respondent was granted mining lease only for Garnet and the 6th respondent has no right over the other minerals in the existing mining lease area. 15. The 6th respondent filed counter affidavit denying the submission of the petitioner that it had paid a sum of Rs.74,07,75,000/- towards purchase of 83,000/- MTs of ilmenite rich tailings and a sum of Rs.3,52,75,000/- towards taxes. So also the purchase of 1,60,400 MTs of loose non magnetic tailings. And contended that the petitioner has no right over the alleged confiscated minerals. It is contended that the impugned show cause notice is issued to the 6th respondent to show cause as to why the confiscated mineral should not be shifted to the custody of APMDC for further disposal. 16. Considered the submissions. 1 1995 2 SCC 413 9 17. Today, in W.P.No12392 of 2023, the show cause notice dated 08.03.2021 was set aside. Having regard to the same, this Court deems it appropriate to dispose of the writ petitions, remanding the matter to the 2nd respondent to pass appropriate orders after giving due opportunity of hearing to the petitioner(s) and the unofficial respondent No.6, within a period of two (2) months from the date of receipt of a copy of this order. 18. Accordingly, these Writ Petitions are disposed of. There shall be no order as to costs. As a sequel, miscellaneous applications pending, if any, shall stand closed. _______________________________ JUSTICE KIRANMAYEE MANDAVA Date: 06.10.2025 BSK 10 139 THE HONOURABLE SMT JUSTICE KIRANMAYEE MANDAVA WRIT PETITION NOS: 27763 & 5445 OF 2022 Date: 06.10.2025 BSK