The Centre has informed the Supreme Court that it is actively working to resolve disputes over the recovery of royalty and tax dues on mineral rights and mineral-bearing lands with several mineral-rich states. This issue has been a point of contention, especially after a landmark judgment in July 2024, where the Supreme Court ruled that the legislative power to tax mineral rights lies with the states, overturning an earlier decision that favored the Centre.
The court has deferred the hearing on this matter to April 24, 2025, to allow time for potential settlements. The Centre’s Solicitor General, Tushar Mehta, has indicated that efforts are ongoing to address the concerns raised by states like Jharkhand, which are seeking to recover significant amounts in royalty and tax dues.
This case has far-reaching implications, as it involves thousands of crores of rupees and could impact the fiscal health of several states. The Supreme Court has also clarified that the judgment will not have a prospective effect, allowing states to recover dues dating back to April 1, 2005.
