The Act violated Articles 14, 19, 21, and 300-A of the Constitution, lacking compensation provisions for mineral rights deprivation.
In a landmark judgment, the Kerala High Court has declared the Kerala Minerals (Vesting of Rights) Act, 2021 unconstitutional. The Division Bench, comprising Dr. A.K. Jayasankaran Nambiar and Preeta A.K., ruled that the Act violates Articles 14, 19, 21, and 300-A of the Constitution of India, as it failed to provide compensation or procedural safeguards to landowners for the deprivation of mineral rights in the Malabar region.
The court found that the Act lacked legislative competence, as it attempted to vest rights over major minerals, which is beyond the State's legislative power. Even if the Act were confined to minor minerals, it failed to provide any compensation, rendering it invalid under Article 300-A, which mandates deprivation of property only by authority of law.
The court also quashed demand notices for royalties on minerals extracted before the Act's enactment and directed the State to refund collected royalties. The judgment emphasizes the need for legislative compliance with constitutional provisions, including just compensation and procedural due process.
Bottom line:-
Kerala Minerals (Vesting of Rights) Act, 2021 declared unconstitutional for violating Articles 14, 19, 21, and 300-A of the Constitution of India. State legislature lacked competence to deprive property rights over minerals without providing compensation or following due process.
Statutory provision(s): Articles 14, 19, 21, 300-A, 246 of the Constitution of India, Entry 23 of List II, Entry 42 of List III, Mines and Minerals (Development and Regulation) Act, 1957, Kerala Minor Mineral Concession Rules, 2015, Kerala Minerals (Vesting of Rights) Act, 2021.
