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Judgment
(PER: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE)
The learned Government Advocate accepts notice for the respondents.
The petitioner has filed the present petition impugning a notice dated 30.06.2026 issued under Rule 44A of the Karnataka Minor Mineral Concession Rules, 1994 [KMMC Rules], calling upon the petitioner to pay the total sum of `2,53,01,080/- as penalty for extracting excess and encroachment quantity totaling to 293067 metric tons of mineral. The said demand is premised on the allegation that the petitioner has extracted and transported building stone in a licensed quarry area without payment of the requisite royalty.
The petitioner has been called upon to pay the stipulated penalty within a period of 6 months from the date of service of the notice. The notice also sets out that the petitioner is also permitted to pay the penalty in four equal installments with one installment due every 45 days.
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.
The learned Government Advocate fairly states that the present petition be disposed of by directing that the impugned notice 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 pass a final order after affording the petitioner an opportunity to be heard.
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.
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.
The petition is disposed of in the aforesaid terms.
