- 1 - HC-KAR CNR: KAHC010559012026 NC: 2026:KHC:46463-DB WP No. 25326 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 28TH DAY OF AUGUST, 2026 PRESENT THE HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE AND THE HON'BLE MRS. JUSTICE K.S. HEMALEKHA WRIT PETITION NO.25326 OF 2026 (GM-MM_S) BETWEEN: SRI DEEPAK S/O. SHANKAR LAXMAN CHAVAN, AGED 39 YEARS, OCC: BUSINESS, R/O. H. NO.E-1-3035, OLD JEWARGI ROAD, JEWARGI COLONY, BEHIND JAIN HOSTEL, GULBARGA-585101. …PETITIONER (BY SRI. SHIVALLI SHIVAYOGI YALLAPPAGOUDA, ADVOCATE) AND: 1. THE STATE OF KARNATAKA REP. BY ITS CHIEF SECRETARY, BENGALURU-560 001. 2. THE SECRETARY TO GOVERNMENT, COMMERCE AND INDUSTRIES DEPARTMENT (MSME & MINES), ROOM NO.135, 1ST FLOOR, VIKAS SOUDHA, BENGALURU-560 001. 3. THE DIRECTOR & COMMISSIONER, DEPT. OF MINES & GEOLOGY, Digitally signed by MAHALAKSHMI B M Location: High Court of Karnataka - 2 - HC-KAR CNR: KAHC010559012026 NC: 2026:KHC:46463-DB WP No. 25326 of 2026 KHANIJA BHAVAN, RACE COURSE ROAD, BENGALURU, BENGALURU-560 001. 4. THE DEPUTY DIRECTOR & COMPETENT AUTHORITY, DEPARTMENT OF MINES & GEOLOGY, NO.01, ATAL BIHAR VAJPAYE LAYOUT, KOTNOOR(D), KALBURGI-585102. 5. KARNATAKA STATE REMOTE SENSING CENTRE (KSRSAC) REPRESENTED BY ITS DIRECTOR, DOOARA SAMVEDI BHAVANA MAJOR SANDIP UNNIKRISHNAN ROAD DODDABETTAHALLI VIDYARANYAPURA, BENGALURU - 560 097. …RESPONDENTS (BY SRI. K.S. HARISH, GOVERNMENT ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OF CERTIORARI OR ANY OTHER ORDER OR DIRECTION DIRECTING TO QUASH OR SET ASIDE THE IMPUGNED NOTICE BEARING NO. GHABHUEE/UNIKE/OTS-NOTICE/2026-27/393 DATED 30.04.2026 ISSUED BY 4TH RESPONDENT DEPUTY DIRECTOR PRODUCED AT ANNEXURE-A, IN TERMS OF GUIDELINES PUBLISHED IN THE OFFICIAL GAZETTE DATED 09.03.2026 FORMULATED UNDER NEWLY INSERTED RULE 44-A OF THE KMMC RULES 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: KAHC010559012026 NC: 2026:KHC:46463-DB WP No. 25326 of 2026 ORAL ORDER (PER: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE) 1. The learned Government Advocate accepts notice for the respondents. 2. The petitioner has filed the present petition impugning the demand notice dated 30.04.2026 [impugned order] issued under Rule 44A of the Karnataka Minor Mineral Concession Rules, 1994 [KMMC Rules], calling upon the petitioner to pay a sum of `1,80,97,800/- as penalty for extraction of an excess quantity of 2,58,540 metric tonnes of building stone, and a sum of `1,65,71,240/- for encroachment involving a quantity of 1,18,366 metric tonnes of building stone. 3. One of the contentions advanced by the petitioner is that the said demand is vitiated as it has been issued without following the principles of natural justice. 4. The learned Government Advocate fairly states that the impugned demand notice may be considered as a show-cause notice and the concerned authority shall pass an order after following the principles of natural justice. - 4 - HC-KAR CNR: KAHC010559012026 NC: 2026:KHC:46463-DB WP No. 25326 of 2026 5. We note that after receipt of the impugned notice, the petitioner has furnished a reply dated 09.06.2026. 6. Given the circumstances, we direct that the impugned demand notice dated 30.04.2026 be considered as a show-cause notice and respondent No.4 shall consider the petitioner's response to the said notice and pass a final order after affording the petitioner an opportunity of hearing. 7. The petition is disposed of in the aforesaid terms. 8. 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 44A of the KMMC Rules, is voluntary and at the option of the lease/licence holder. Sd/- (VIBHU BAKHRU) CHIEF JUSTICE Sd/- (K.S. HEMALEKHA) JUDGE MBM List No.: 2 Sl No.: 28