Supreme Court to Revisit Legislative Power to Tax Mineral Rights

The Supreme Court will consider pleas concerning the legislative authority to tax mineral rights on May 20, following a pending curative petition by the Centre. Previously, a nine-judge bench ruled that states, not Parliament, have this legislative power, prompting ongoing legal debates and petitions.

The Supreme Court has scheduled a hearing for May 20 to address pleas related to the power to tax mineral rights, as the Centre's curative petition remains unresolved. This follows a critical ruling that states possess legislative authority over these taxes, not Parliament.

In a decision dated July 25, 2024, the apex court's nine-judge bench predominantly affirmed that the legislative competence to tax mineral rights lies with state governments, except for Justice B V Nagarathna's dissenting view. The ruling allowed mineral-rich states to recover significant amounts in dues from the Centre and mining companies, impacting the sector since 2005.

The matter's complexity deepens with ongoing petitions, some initiated as far back as 1999, reflecting a protracted dispute over regulatory and fiscal jurisdiction in mineral development. The Supreme Court's decision on the curative plea remains crucial for resolving these longstanding legal debates.