The Telangana High Court recently set aside a series of penalty-demand notices and show-cause orders issued by the assistant director of Mines and Geology concerning alleged unauthorised quarrying and transportation of minerals. In a common order dated September 24, Justice K Lakshman found that the original proceedings violated the fundamental principles of natural justice, warranting a complete re-examination of the cases. The petitioners contended that they were issued show-cause notices stating that they had excavated and transported gravel unauthorisedly and were given 15 days to respond. Without considering the replies and explanations, they were issued demand notices directing them to pay certain fine amounts. The court took into consideration whether the assistant director has jurisdiction to issue demand notices invoking his power under Rule 26 of the Telangana State Minor Mineral Concession (TSMMC) Rules, 1966, on the allegation of unauthorised excavation and transportation of gravel. And if yes, whether the officer followed the procedure laid down under the said Rules and principles of natural justice in issuing impugned demand notices. The bench was dealing with a batch of petitions, from several mining operators, that had challenged the high penalty demands, arguing that the petitioners were not provided adequate documentation or a fair opportunity to present their defence. Upholding this contention, the court directed the authorities concerned to restart the process by issuing fresh notices and providing all necessary materials to the petitioners. The court said the assistant director “shall follow the procedure laid down under Rule 26 of the Rules, principles of natural justice, consider the contentions raised by the petitioners in the reply and documents filed along with the reply, offer fair hearing and issue demand notice.” In a strong rebuke to the administrative processes previously employed, Justice Lakshman issued instructions for the future conduct of the inquiry. The judgment explicitly directed the assistant director to conduct the investigation with transparency and impartiality, stating: “The Assistant Director is further directed to record reasons for conclusions arrived at and ensure that the principles of natural justice are followed.” The court mandated a strict timeline for compliance. The assistant director must now issue fresh show cause notices and supply all requested documents and materials within one week. Petitioners are then granted one week to file their replies, after which the authority must “consider the same objectively, evaluate the quantum of penalty, and pass a fresh, reasoned demand notice in accordance with law." The court said that the judgment does not express any opinion on the merits of the allegations of unauthorised quarrying or transportation. The authority remains free to decide the matter independently based on the material available and submissions advanced, provided due process is strictly observed. The previous demand notices will stand quashed, and the respondents must now follow the newly stipulated procedure before imposing any fresh penalties.
