- 1 - HC-KAR CNR: KAHC010468492026 NC: 2026:KHC:37313-DB WP No. 20833 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 21ST DAY OF JULY, 2026 PRESENT THE HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE AND THE HON'BLE MRS. JUSTICE K.S. HEMALEKHA WRIT PETITION NO.20833 OF 2026 (GM-MM_S) BETWEEN: SRI. D. SUDHAKARA SHETTY S/O. DASU SHETTY AGED ABOUT 56 YEARS MANAGING PARTNER AND AUTHORIZED REPRESENTATIVE OF M/S. MUGRODI CONSTRUCTIONS OFFICE AT MUGRODY ENCLAVE, KAVOOR, GANDHI NAGAR, KAVOOR, MANGALURU, KARNATAKA - 575015. …PETITIONER (BY SMT. NIRIKSHA Y.M., ADVOCATE) AND: 1. STATE OF KARNATAKA REPRESENTED BY ITS SECRETARY DEPARTMENT OF COMMERCE AND INDUSTRIES VIKASA SOUDHA, BENGALURU - 560001. 2. THE DIRECTOR DEPARTMENT OF MINES AND GEOLOGY KHANIJA BHAVANA Digitally signed by MAHALAKSHMI B M Location: High Court of Karnataka - 2 - HC-KAR CNR: KAHC010468492026 NC: 2026:KHC:37313-DB WP No. 20833 of 2026 RACE COURSE ROAD BENGALURU - 560001. 3. THE SENIOR GEOLOGIST DEPARTMENT OF MINES AND GEOLOGY PRAJASOUDHA, PADIL MANGALURU - 575008. …RESPONDENTS (BY SRI. HARISH K.S., GOVERNMENT ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OF CERTIORARI OR ANY OTHER APPROPRIATE WRIT, ORDER OR DIRECTION QUASHING THE DEMAND NOTICE DATED 17.04.2026 BEARING NO.Gabhooi/Hibhoovi(M)/Kagagu/OTS/2026-27/363 RELATING TO MINING LEASE NO.401 DEMANDING RS.2,45,72,100/- AND THE DEMAND NOTIE DATED 17.04.2026 BEARING NO. Gabhur/Hibhuvi(M)/KS/OTS/2026-27/360 RELATING TO MINING LEASE NO.3252 DEMANDING RS.2,15,79,950/-, BOTH ISSUED BY RESPONDENT NO.3 UNDER RULE 44A OF THE KARNATAKA MINOR MINERAL CONCESSION RULES, 1994 AS AMENDED IN 2026 UNDER THE ONE TIME SETTLEMENT SCHEME, TOGETHER WITH ALL PENAL AND COERCIVE CONSEQUENCES CONTAINED THEREIN VIDE ANNEXURE-A AND ETC. 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 MRS. JUSTICE K.S. HEMALEKHA - 3 - HC-KAR CNR: KAHC010468492026 NC: 2026:KHC:37313-DB WP No. 20833 of 2026 ORAL ORDER (PER: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE) 1. The learned Additional Government Advocate accepts notice for the respondents. 2. The petitioner has filed the present petition impugning the demand notices dated 17.04.2026 [impugned orders] issued under Rule 44A of the Karnataka Minor Mineral Concession Rules, 1994, demanding an amount of `2,45,72,100/- and `2,15,79,950/-. The said demands are premised on the allegation that the petitioner has extracted and transported building stone in a licensed quarry area without payment of the requisite royalty. 3. One of the principal grounds on which the impugned notices are challenged is that they were issued without affording the petitioner an opportunity to be heard. 4. The learned Additional Government Advocate clearly states that the impugned demand notices may be considered as a show cause notice. The petitioner may file a response to the same within a period of two weeks from date and the concerned authority shall - 4 - HC-KAR CNR: KAHC010468492026 NC: 2026:KHC:37313-DB WP No. 20833 of 2026 pass a final order after affording the petitioner an opportunity to be heard. 5. In view of the aforesaid statement, no orders are required to be passed in this petition, except that the respondents would be bound down to the statement, made on their behalf. We clarify that we have not examined the merits of the demands and nothing stated in this order should be construed as such. 6. We clarify that all rights and contentions of the parties are reserved including the petitioner's contention that the one time settlement [OTS] as contemplated under Rule 44-A of the KMMC Rules, is voluntary and at the option of the lease/licence holder. 7. The petition is disposed of in the aforesaid terms. Sd/- (VIBHU BAKHRU) CHIEF JUSTICE Sd/- (K.S. HEMALEKHA) JUDGE MBM List No.: 2 Sl No.: 20