Department of Atomic Energy Can't Prohibit Grant Of Exploration License Of Atomic Minerals Permissible Under The Provisions Of OAMDR Act: Andhra Pradesh HC [Read Order]

The Andhra Pradesh High Court recently observed that Department of Atomic Energy can't prohibit grant of exploration license of Atomic Minerals to any private person permissible under the provisions of the OAMDR act.The Bench of the Chief Justice Jitendra Kumar Maheshwari and Justice K. Suresh Reddy made it clear that in the matter of grant of the operating right, it may be given to any person or private company for the atomic minerals but at the stage of giving the production lease for atomic minerals or prescribed substance, the consultation with the department of the Government of India dealing with the Atomic energy is required.Background of the OAMDR Act and allocation of blocks by itOffshore Areas Minerals (Development and Regulation) Act [OAMDR] came into force in 2010. Government of India (Ministry of Mines, GOI) appointed the administrating authority under the provisions of the OAMDR Act on 11.02.2020.The said authority issued notification dated 07.06.2010 in terms of the mandate of S. 10 of the OAMDR Act, which required the authority to issue notification within 6 months of the Act, indicating the offshore areas available for grant of license.By the said notification, 62 offshores blocks were notified. The Administrating Authority, in the exercise of its power under Section 12 of the Act, issued orders dated 05.04.201 granting exploration licenses for the 62 blocks to 16 successful applicants, including the petitioner (M/s Standard Metalloys Private Limited) herein who was granted 6 blocks in the bay of Bengal (adjoining the coastline of Andhra Pradesh State).Several private parties (who were not allotted the blocks) had moved various High Courts, however, they did not get any relief in any of the cases filed.CBI Enquiry in the allocation of BlocksFurther, based on the news item published in newspapers, which sought to raise suspicion on the allocation of the blocks, the Central Bureau of Investigation initiated a preliminary inquiry.However, the CBI submitted a closure report dated 28.03.2013, having found no evidence of mala fide on the part of any public servant and no evidence of quid pro quo between the public servants and the successful allottees.Validity of the selection process and the same being in accordance with law attained finalityThe report of the CBI was also accepted by the Ministry of Mines, because the Minister of Mines, GOI, in a reply to a question in Parliament, stated that no misconduct was found by the CBI on the part of any official, thus put the said matter at rest.Importantly, before the Bombay High Court, respondent No. 1 [Union of India, Rep by Secretary (Ministry of Mines)] defended the action and criteria adopted by the then administrating authority in the process of selection.SLP (C) No. 5530 of 2014 preferred by the private party against the Judgment of the Bombay High Court was also dismissed by the Apex Court (vide its order dated 21.03.2014)Accordingly, the validity of the selection process and the same being in accordance with law attained finality.Attempt to cancel the allotment of Blocks by Secretary (Mines) and Petitions in HCsHowever, on 14.07.2015, the then Secretary (Mines) directed IBM to explore a way to cancel the allotment of the blocks so that the same blocks could be re-granted.It was the contention of the petitioner (M/s Standard Metalloys Private Limited) that the said exercise was obviously undertaken to benefit certain private parties who had not been granted blocks in the previous allotment process.Now, since the administrating authority was not executing the exploration licenses to the valid allottees despite the selection process having attained the finality by the court, some allottees approached the High Court of Bombay and Delhi seeking writs in the nature of mandamus to direct the authority to execute the exploration licenses. These petitions were filed in June 2016.Surprisingly, the Administrating authority, in a hurried manner, by order dated 30.06.2016 issued an order to annul the notification and grants so as to defeat the pending writ petitions in Courts.The said order was challenged in Delhi High Court, the Delhi High court directed the respondents to execute the exploration license and set aside order dated 30.06.2016.The High Court delivered the findings against the officers of the Ministry of Mines indicating their mala fide and the manner in which the cancellation order dated 30.06.2016 was passed arbitrarily.Based on these findings, a complaint was made to Central Vigilance Commission (CVC), which further directed for an independent investigation against the officers of the Ministry of Mines.Being influenced by the said development, officers in the Ministry of Mines immediately wrote a letter to CBI on 01.04.2019, making a request to reopen the preliminary enquiry closed earlier on 28.03.2013 after thorough investigation.In the meantime, the said order dated 06.02.2019 of the Single Judge of the Delhi High Court was challenged ...

Department of Atomic Energy Can't Prohibit Grant Of Exploration License Of Atomic Minerals Permissible Under The Provisions Of OAMDR Act: Andhra Pradesh HC [Read Order]

Sparsh Upadhyay

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