Supreme Court Moots Verdict on Mineral Rights Taxation: States Split on Implementation

BJP-ruled Madhya Pradesh and Rajasthan support the Centre’s plea for prospective implementation of a Supreme Court verdict on mineral rights taxation, while JMM-led Jharkhand seeks retrospective effect. Odisha remains undecided. The July 25 verdict, by an 8:1 majority, grants states the legislative power to tax mineral rights and overrules a previous 1989 judgment.

The BJP-ruled states of Madhya Pradesh and Rajasthan, on Wednesday, supported the Central government's plea in the Supreme Court for prospective implementation of its verdict on royalty and taxes on mines and minerals.

Contrarily, the JMM-led Jharkhand government stood firm on retrospective implementation of the July 25 ruling. Meanwhile, the newly elected BJP government in Odisha did not specify a clear stance, despite the Supreme Court's encouragement.

The nine-judge constitution bench, led by Chief Justice DY Chandrachud, reserved orders on whether the July 25 verdict upholding states' power to levy tax on mineral rights should be applied retrospectively or prospectively.

(With inputs from agencies.)