Supreme Court Upholds Right Of States To levy Royalty On Mineral Tax
NDTV
The verdict was 8:1 in state governments' favour, with Justice BV Nagarathna offering the dissenting voice.
The Supreme Court on Thursday upheld state governments' right to levy royalty on mineral-bearing land, reasoning they had competence and power to do so. This will benefit mineral-rich states like Odisha, Jharkhand, Bengal, Chhattisgarh, Madhya Pradesh, and Rajasthan.
The landmark 8:1 verdict was delivered by a bench led by Chief Justice DY Chandrachud, which ruled 'royalty' is not the same as 'tax'; Justice BV Nagarathna delivered the dissenting verdict.
Justice Nagarathna said allowing states to tax mineral rights would lead to "unhealthy competition between states to derive revenue... the national market could be exploited... this would lead to a breakdown of the federal system, in the context of mineral development".
