Centre moves SC against states' power to tax mining lands
What's the story
The central government has filed a curative petition in the Supreme Court, challenging its earlier decision that empowered states to levy taxes on mining and mineral-bearing lands. The petition was filed on Thursday. Chief Justice of India, Surya Kant, hinted at the possibility of hearing this case in January 2026.
Past rulings
Supreme Court's earlier decisions on mineral rights taxation
In October 2024, the Supreme Court had rejected a review petition by the central government. The court had also dismissed another plea from the Centre, seeking that its judgment be applicable only prospectively. On July 25, 2024, a nine-judge bench ruled in an 8:1 majority that the legislative power to tax mineral rights lies with states. This decision overturned a previous ruling from 1989 which had granted this authority solely to the Centre.
Payment schedule
Supreme Court's directive on payment of dues
The Supreme Court had also directed that the payment of dues by the Centre and mining companies could be made to mineral-rich states in a staggered manner over 12 years. The bench had also asked states not to impose any penalty for delayed payments. In August 2024, the court had reaffirmed states' right to tax mineral rights and mineral-bearing land, allowing them to claim refunds on royalties from April 1, 2005 onwards.