Center files petition in Supreme Court seeking overturn of order allowing states to levy tax on mining and mineral-rich lands

The Center on Thursday (November 27) filed a curative petition in the Supreme Court seeking to overturn the order of a nine-judge bench that had given states the power to impose tax on mining and mineral-rich lands.

Chief Justice of India Surya Kant indicated that he may consider hearing the case in January 2026.

In October 2024, the top court had rejected a review petition filed by the Centre. The court had earlier rejected the Centre’s plea seeking only prospective implementation of the decision.

Solicitor General Tushar Mehta mentioned the Centre’s plea before the CJI and sought an early hearing.

In an 8:1 majority judgment on July 25, 2024, the bench said that the legislative power to tax mineral rights rests with the states. The judgment had overruled a 1989 verdict which had said that only the Center had the power to levy royalty on minerals and mineral-rich lands.

The order said payment of dues by the Center and mining companies to the mineral-rich states could be made in a graded manner over the next 12 years. The bench had directed the states not to impose any penalty for payment of dues.

In August 2024, the court upheld the power of states to tax mineral rights and mineral-bearing lands, and allowed them to demand the return of royalties from April 1, 2005.