- 1 - HC-KAR NC: 2025:KHC:35591-DB WP No. 34073 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 10TH DAY OF SEPTEMBER, 2025 PRESENT THE HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE AND THE HON'BLE MR. JUSTICE C M JOSHI WRIT PETITION NO. 34073 OF 2024 (GM-FOR) BETWEEN: 1. M/S KIOCL LTD., (A GOVT. OF INDIA ENTERPRISE) REGISTERED UNDER THE COMPANIES ACT, 1956 2ND BLOCK, KORAMANGALA BENGALURU - 560 034 REPRESENTED BY SHRI G.V. KIRAN CHAIRMAN-CUM-MANAGING DIRECTOR AND DIRECTOR (PRODUCTION & PROJECTS) ADDL. CHARGE. …PETITIONER (BY SRI K.N. PHANINDARA, SENIOR ADVOCATE A/W SRI. K.RAGHAVA CHARYULU AND SRI MOHAMED RIZWAN AHAMED, ADVOCATES) AND: 1. STATE OF KARNATAKA REPRESENTED BY ADDL. CHIEF SECRETARY (FOREST, ENVIRONMENT AND ECOLOGY) IV FLOOR, M.S. BUILDING BENGALURU - 560 001 2. STATE OF KARNATAKA, REPRESENTED BY ITS Digitally signed by AMBIKA H B Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:35591-DB WP No. 34073 of 2024 PRINCIPAL CHIEF CONSERVATOR OF FOREST (HOFF), ARANYA BHAVAN 18TH CROSS, MALLESWARAM BENGALURU - 560 003 3. STATE OF KARNATAKA REPRESENTED BY DEPUTY CONSERVATOR OF FOREST BELLARY DIVISION BELLARY - 583 101 4. UNION OF INDIA REPRESENTED BY ITS ASSISTANT INSPECTOR GENERAL OF FORESTS MINISTRY OF ENVIRONMENT FOREST AND CLIMATE CHANGE (FOREST CONSERVATION DIVISION) INDIRA PARYAVARAN BHAWAN JORBAGH ROAD, ALIGANJ NEW DELHI - 110 003 5. THE DIRECTOR, DEPARTMENT OF MINES AND GEOLOGY KHANIJA BHAVAN RACE COURSE ROAD BANGALORE - 560 009 …RESPONDENTS ( SRI KIRAN V. RON, AAG A/W SMT. NILOUFER AKBAR, AGA FOR R-1 TO 3 & 5, SRI S.R. DODAWAD, ADVOCATE FOR R-4) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DECLARE THAT THE CONDITION NO.VIII OF PART-B OF ANNEXURE-'F' BEARING FILE NO.8-24-FC DATED 16/12/2022 BY RESPONDENT NO.4, FOLLOWED BY GOVERNMENT OF KARNATAKA ORDER DATED 11/04/2023 VIDE BEARING NO.FEE 19 FFM 2020 BENGALURU, AS PUBLISHED IN THE GOVERNMENT GAZETTE DATED 02/05/2023 VIDE ANNEXURE-A PASSED BY RESPONDENT NO.1, AS CONDITION REQUIRED TO BE COMPLIED WITH BY THE PETITIONER AFTER HANDING OVER OF THE FOREST LAND TO THE PETITIONER BY THE STATE GOVERNMENT OF KARNATAKA & ETC. - 3 - HC-KAR NC: 2025:KHC:35591-DB WP No. 34073 of 2024 THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE and HON'BLE MR. JUSTICE C M JOSHI ORAL ORDER (PER: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE) 1. The petitioner [KIOCL] is a Public Sector Enterprise which functions under the aegis of the administrative control of the Ministry of Steel, Government of India. 2. KIOCL has filed the present petition, inter alia, praying as under: "(a) Declare that the condition No. viii of Part-B of Annexure 'F' bearing File No. 8-24/2020-FC dated 16.12.2022 by Respondent No. 4, followed by Govt of Karnataka order dated 11.04.2023 vide bearing no. FEE 19 FFM 2020 Bengaluru, as published in the Govt Gazette dt. 02.05.2023 vide Annexure A passed by Respondent No. 1, as condition required to be complied with by the petitioner after handing over of the forest land to the petitioner by the State Government of Karnataka. (b) Direct the Respondents No.1 - 3 to hand over forthwith the forest land to the petitioner company in terms of Annexures 'A' to 'G' to the writ petition; (c) Direct the respondent Nos.1 - 3 to execute the forest lease agreement in time bound manner to avoid further loss of time; and (d) Pass such other order or orders as deemed fit in the circumstances of the case, in the interest of justice." - 4 - HC-KAR NC: 2025:KHC:35591-DB WP No. 34073 of 2024 3. The petitioner states that the respondent, Government of Karnataka had reserved 470.4 hectares of land for mining of iron ore and manganese ore in Devadari Hill Range, Sandur Taluk, Ballari District, Karnataka in favour of the petitioner. The Government of India has also granted its approval dated 05.12.2016 for obtaining a mining lease for commencing its mining operations on the said land. It is not disputed that the petitioner had obtained all approvals and clearances from statutory and regulatory agencies as required for carrying on mining operations on the subject land. 4. The Government of Karnataka had also executed a mining lease deed (ML No. 20 dated 02.01.2023) with respect to the subject land for a period of 50 years with effect from 18.01.2023. It is not disputed that the petitioner has obtained all the requisite clearances under the Forest (Conservation) Act, 1980 [the Forest Act] and the Environment (Protection) Act, 1986 as well as the approvals from the Indian Bureau of Mines. Admittedly, Stage-I permission as contemplated under Section 2 of the Forest Act has been achieved. The petitioner has also obtained Stage-II - 5 - HC-KAR NC: 2025:KHC:35591-DB WP No. 34073 of 2024 clearances from the Ministry of Environment and Forest, Government of India. 5. However, the handing over of the subject land had been withheld by the State Government on account of various issues, including certain alleged irregularities in mining operations carried out by the petitioner earlier. 6. In the aforesaid backdrop, on 21.07.2025, this Court had passed the following order: "1. The principal issue that arises for consideration in the present petition is, whether the respondents are justified in withholding handing over possession of the land in question on the ground that certain other conditions have not been complied with. 2. The second issue to be examined is, whether there is any dispute as to the obligations of the petitioner to comply with those conditions that are set down in the affidavit filed on 15.04.2025. 3. List on 04.08.2025, at 2.30 p.m. 4. In the meanwhile, we request the concerned officials to hold a meeting for exploring the possibility of a resolution of the current impasse." 7. Pursuant to the said order, a meeting was held on 31.07.2025 and the minutes of the said meeting were handed over - 6 - HC-KAR NC: 2025:KHC:35591-DB WP No. 34073 of 2024 to this Court on 11.08.2025. On the said day, this Court had passed the following order: "1. This Court is informed that in terms of an order dated 21.07.2025, the concerned officials have held meeting for exploring the possibility of resolving the impasse. The minutes of the said meeting have been handed over to this Court. The same indicate that in respect of the issue of the land to the extent of 1220.30 hectares, land to the extent of 670.73 hectares already stands mutated in the name of the Forest Department. The balance land measuring 549.30 hectares is yet to be mutated in the name of the Forest Department. However, out of the said land, 150 hectares has been encroached and therefore, steps are required to be taken for removal of encroachment. 2. Insofar as the second issue, which is regarding land held by KIOCL to the extent 114.30 hectares, is concerned. The CMD of KIOCL had agreed to handover all buildings at zero book value to the Forest Department, subject to confirmation of the Board. 3. Learned Senior Counsel submits that the decision in this regard is required to be taken by the Ministry of Steel, Govt. of India. He states that KIOCL shall forward the proposal with positive recommendations to the Ministry of Steel to take decision in this regard. However, KIOCL shall retain 18 buildings (which are quarters) comprising in Survey Nos.89, 90 and 97 (Incorrectly mentioned as Sy.No.18 in the minutes of meeting) and 1 building (which is Kendriya Vidyalaya Complex) in Survey No.96 for accommodating the staff for maintenance of Lakhya Dam and water pipeline to Mangalore. 4. The third issue, which is flagged is regarding payment of Rs.9,91,21,750/-, which the respondents' claim on account of permit fee for transportation of 10,82,80,500 MT through pipeline to Mangalore. According to KIOCL, no permit fee is payable for transportation of iron ore through pipelines. - 7 - HC-KAR NC: 2025:KHC:35591-DB WP No. 34073 of 2024 5. It is pointed out that an action for recovery of the said amount has already been instituted against KIOCL being Case No.1 of 2012 before the Recovery Officer and Chief Conservator of Forests, Mangalore Circle, Mangalore. The proceedings are yet inconclusive 6. Since the said proceedings are as yet inconclusive, the respondents cannot insist on recovery of the same by withholding the possession of the land, which is to be handed over to the petitioner. 7. In order to obviate any further delay and protracted proceedings, we consider it apposite to direct KIOCL to take immediate steps for obtaining the approval of the Ministry of Steel and Mines for handing over the buildings and 114 hectares of land, which are in its possession, as mentioned in the minutes of the meeting held on 31.07.2025. 8. List on 02.09.2025." 8. This Court is informed that thereafter further meetings were also been held. The petitioner has also furnished an Undertaking dated 12.08.2025 to the Additional Chief Secretary (FEE) to Government of Karnataka that it would comply with certain obligations as required. 9. Insofar as the petitioner's claim for possession of the subject land is concerned, we find that there is no impediment in the respondents handing over the same. Insofar as the undertaking of the petitioner to comply with certain other conditions is concerned, there is also no dispute that the petitioner would be bound by the - 8 - HC-KAR NC: 2025:KHC:35591-DB WP No. 34073 of 2024 undertaking dated *12.08.2025 as furnished. However, handing over of possession of the forest land cannot be withheld on account of resolution of other issues, if any. 10. The learned Senior Counsel appearing for the petitioner also referred to Section 4A(4) of the Mines and Minerals (Development and Regulations) Act, 1957, and emphasized that if the mining operations are not commenced, the permission granted to the petitioner may be in jeopardy. The aforesaid provision is reproduced below: "(4) Where the holder of a mining lease fails to undertake production and dispatch for a period of two years after the date of execution of the lease or, having commenced production and dispatch, has discontinued the same for a period of two years, the lease shall lapse on the expiry of the period of two years from the date of execution of the lease or, as the case may be, discontinuance of the production and dispatch: PROVIDED that the State Government may, on an application made by the holder of such lease before it lapses and on being satisfied that it shall not be possible for the holder of the lease to undertake production and dispatch or to continue such production and dispatch for reasons beyond his control, make an order, within a period of three months from the date of receipt of such application, to extend the period of two years by a further period not exceeding one year and such extension shall not be granted for more than once during the entire period of lease: PROVIDED FURTHER that such lease shall lapse on failure to undertake production and dispatch or *Corrected vide Chamber order dated 22.09.2025 - 9 - HC-KAR NC: 2025:KHC:35591-DB WP No. 34073 of 2024 having commenced the production and dispatch fails to continue the same before the end of such extended period." 11. In view of the above, we direct respondent Nos.1 to 3 to forthwith handover the subject land to the petitioner and also execute the forest lease agreement as prayed for by the petitioner. Insofar as the petitioner's first prayer is concerned – that is to declare that Condition No.(viii) of Part-B of the letter dated 16.12.2022 (File No.8-24/2020-FC) has to be complied with after the possession of the subject land has been handed over – the learned counsel confirm that said issue stands resolved and no further order is required to be passed in regard to this prayer. 12. We dispose of the present petition, with the consent of the counsel, in the above terms. Sd/- (VIBHU BAKHRU) CHIEF JUSTICE Sd/- (C M JOSHI) JUDGE AHB List No.: 1 Sl No.: 4