STATE OF RAJASTHAN vs GOTAN LIME STONE KHANIJ UDYOG

The Supreme Court addressed the legality of the transfer of a mining lease under the Rajasthan Minor Mineral Concession Rules, 2017, specifically examining whether the transfer from a partnership to a private limited company constituted an illegal transfer. The Court held that the subsequent sale of the entire shareholding of the private limited company to a third party, which was not disclosed during the transfer application, amounted to a circumvention of the rules, justifying the State's cancellation of the lease. The High Court's quashing of the State's cancellation order was thus overturned, reaffirming the State's authority to regulate mining leases.