- 1 - HC-KAR CNR: KAHC010607142026 NC: 2026:KHC:49654-DB WP No. 27247 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 11TH DAY OF SEPTEMBER, 2026 PRESENT THE HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE AND THE HON'BLE MRS. JUSTICE K.S. HEMALEKHA WRIT PETITION NO.27247 OF 2026 (GM-MM_S) BETWEEN: SRI BASAVARAJ S/O NANDEPPA KURAVATTI, AGED 55 YEARS, OCC: BUSINESS, R/O BELAGALAPETH, HAVERI - 581 104. …PETITIONER (BY SRI. SHIVALLI SHIVAYOGI YALLAPPAGOUDA, ADVOCATE) AND: 1. THE STATE OF KARNATAKA REP. BY ITS CHIEF SECRETARY, BENGALURU - 560001. 2. THE SECRETARY TO GOVERNMENT COMMERCE AND INDUSTRIES DEPARTMENT (MSME & MINES) ROOM NO.135, 1ST FLOOR, VIKAS SOUDHA, BENGALURU - 560001. 3. THE DIRECTOR & COMMISSIONER DEPT. OF MINES & GEOLOGY, KHANIJA BHAVAN, RACE COURSE ROAD, BENGALURU BENGALURU - 560001. Digitally signed by MAHALAKSHMI B M Location: High Court of Karnataka - 2 - HC-KAR CNR: KAHC010607142026 NC: 2026:KHC:49654-DB WP No. 27247 of 2026 4. THE SENIOR GEOLOGIST, DEPARTMENT OF MINES & GEOLOGY, GG MAGAVI, CHAMBERS, IIND FLOOR, PB ROAD, HAVERI - 581110. 5. KARNATAKA STATE REMOTE SENSING CENTRE (KSRSAC) REPRESENTED BY ITS DIRECTOR, DOOARA SAMVEDI BHAVANA MAJOR SANDIP UNNIKRISHNAN ROAD DODDABETTAHALLI VIDYARANAYAPURA BENGALURU - 560097. …RESPONDENTS (BY SRI. K.S. HARISH, 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 ORDER OR DIRECTION DIRECTING TO QUASH OR SET ASIDE THE IMPUGNED NOTICE BEARING NO. GABHUEE/HIBHUHA/OTS-NOTICE/2026-27/474 DATED 12-05-2026 ISSUED BY 4TH RESPONDENT SENIOR GEOLOGIST 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: KAHC010607142026 NC: 2026:KHC:49654-DB WP No. 27247 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 12.05.2026 [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 `98,06,510/- as penalty. The said demand has been raised towards a one-time settlement [OTS] of the penalty for extracting 1,40,093 metric tonnes of building stone in excess of the quantity reported. 3. The petitioner states that he responded to the said notice by letter dated 28.05.2026. The learned counsel for the petitioner submits that the impugned demand notice is vitiated as it has been issued without following the principles of natural justice. 4. The learned Government Advocate fairly submits that the impugned demand notice would be treated as a show cause notice, the petitioner's response to the same would be considered and the - 4 - HC-KAR CNR: KAHC010607142026 NC: 2026:KHC:49654-DB WP No. 27247 of 2026 concerned authority would pass an appropriate 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 demand 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.: 3