Supreme Court Upholds States' Authority to Tax Mineral Rights

The Supreme Court dismisses review petitions challenging its decision that states have legislative power to tax mineral rights. Chief Justice DY Chandrachud and seven other judges did not find merit in the petitions. Justice BV Nagarathna dissented, issuing notice to the Centre and the states, advocating for an open court hearing.

The Supreme Court has rejected pleas for a review of its landmark July 25 decision affirming that the power to tax mineral rights lies with the states. The eight-member bench, headed by Chief Justice DY Chandrachud, found no merit in the review petitions presented to them in chambers.

Justice BV Nagarathna, dissenting from the majority ruling, contended that only the central government possesses the authority to levy taxes on mineral rights. She issued a separate order inviting responses from the Centre and the states and allowed for an open court hearing, contrary to the majority decision.

The original verdict, handed down with an 8:1 majority, stated that states have legislative authority over mineral rights taxation. This ruling benefitted mineral-rich states, allowing them to recover revenue from the Centre and mining companies dating back to April 1, 2005, to be paid over 12 years starting April 1, 2026.

(With inputs from agencies.)