States » EastPosted at: Oct 1 2026 9:46PM


Patna HC quashes forfeiture of Rs 2.9 Cr in mining lease case

Patna, Oct 1 (UNI) The Patna High Court has quashed the forfeiture of a Rs 2.90-crore security deposit in a mining lease dispute, holding that the delay in execution of the lease could not be attributed solely to the bidder when the required government documentation was incomplete.
The case concerned Stone Block No. 27 at Mauza-Hazratpur, Mandro Chandi in Sheikhpura district, which had been auctioned to M/s Balaji Enterprises in 2017. The firm was issued a Letter of Intent but the lease could not be executed as the District Survey Report (DSR) lacked essential geo-coordinate details, including latitude and longitude, required for obtaining environmental clearance.
The District Magistrate, Sheikhpura, subsequently cancelled the settlement and ordered forfeiture of the firm''s Rs 2.90-crore security deposit in January 2023. The decision was later upheld by the Mines Commissioner.
The High Court set aside the orders, observing that the petitioner could not be held responsible for the delay when the requisite information and documentation from the authorities were not available.
The court directed the competent authority to finalise the DSR and thereafter complete the necessary process for settlement and execution of the mining lease within six weeks.
The judgment also stressed the need for proper and complete documentation in mining auctions, particularly where statutory environmental clearances depend upon information to be supplied by government authorities.
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