Supreme Court rejected FIMI plea on ban of e-auction of iron ores

6 months ago Swastika Dash 0

New Delhi: The Supreme Court, on Monday, rejected the plea for a ban on the e-auction sales of iron and manganese ores in Karnataka. The ban, sought by the union of Federation of Indian Mineral Industries a.k.a FIMI and Vedanta was refused by a bench of justices, led by Ranjan Gogoi and Naveen Sinha.

Supreme Court rejected FIMI plea on ban of e-auction of iron ores
Supreme Court rejected FIMI plea on ban of e-auction of iron ores

We dismissed their petition as the various arguments and suggestions put forward by them in support of the ban seemed unfavorable, unconvincing, and insufficient.”

Back in April 2013, the apex court had ordered that iron and manganese ores must be sold online, under the supervision of the Central Empowered Committee(CEC). This ruling was a consequence of a case filed by a nonprofit organization ‘Samaj Parivartana Samudaya‘.

The NPO reported rampant malpractices and illegal mining across the forests of Karnataka, leading to environmental damage. This resulted in the Supreme Court removing all the validates under the 51C category of mining leases and contracts; it implemented the monitoring of sales of ores through online auctions under the CEC only.

In April 2016, the FIMI again filed a petition, stating that instead of an e-auction, reliance must be done on the buyers and producers’ long term agreements. But, the SPS again opposed this action, stating that online auctions are transparent, supervised to prevent illegal malpractices and also provide the best prices and loyalty to the government.

The Supreme court finally laid its impending judgment in favor of the organization, ruling out any further possibility of a ban.

The FIMI has also sought a call on increasing the mining cap quantity by at least 10 metric tonnes per annum, to increase production and sales. The court is yet to announce its judgment in this regard.