State of Meghalaya v. All Dimasa Students Union, Dima Hasao District Committee & Ors.
Background
Unregulated and often illegal "rat-hole" coal mining in the tribal hill districts of Meghalaya had caused loss of life and serious environmental damage. The National Green Tribunal (NGT) had passed a series of orders banning unscientific mining, regulating transportation of already-extracted coal, and directing the State to deposit large sums (including Rs. 100 crores) for environmental restoration. The State of Meghalaya, several coal-traders' associations, a district autonomous council and an individual miner filed multiple appeals before the Supreme Court challenging different aspects of these NGT orders.
Decision Breakdown
The Supreme Court largely upheld the NGT's core direction to stop illegal and unscientific coal mining, holding that natural resources belong to all generations and must be used sustainably, not exploited unchecked by the present generation. It dismissed the main batch of appeals challenging the mining ban (subject to some clarifications of law), but allowed one appeal in part, setting aside the NGT's direction that all coal extracted after a cut-off date automatically vested in the State, and partly allowed the State's appeal on the Rs. 100 crore deposit, permitting that amount to be transferred to the Central Pollution Control Board for environmental restoration use. The Court also laid down a detailed mechanism for weighment, transportation and auction of previously-extracted coal through Coal India Ltd., with proceeds to be shared between the State (royalty, taxes, MERP Fund) and coal owners after deducting costs.
Lesson Learnt
Even when a legitimate economic activity (coal mining) is involved, courts will enforce environmental regulation strictly where unscientific extraction endangers lives and ecology, but enforcement orders (like confiscation of already-extracted material) must still be proportionate and legally sound, which is why parts of the NGT's order were modified on appeal.