KARNATAKA RARE EARTH vs SR.GEOLOGIST,DEPTT.OF MINES&GEOLOGY&ANR

The Supreme Court upheld the Karnataka High Court's decision quashing the grant of 203 quarry leases under Rule 3 of the Karnataka Minor Mineral Concession Rules, 1969, which violated the prohibition in Rule 3A. The Court clarified that interim orders allowing the appellants to operate did not validate the leases, and thus, the demand for payment of the price of exported granite blocks was lawful. The Court held that the appellants could not claim the leases as valid despite the interim orders, affirming the High Court's ruling.