Gujarat HC quashes ₹5 cr penalty order issued before show cause notice in mining case

Gujarat High Court while hearing a quashing petition observed that an order imposing heavy penalty was passed by Assistant Geologist of Valsad before the delivery of show cause notices to the petitioner. It quashed and set aside the order imposing a penalty to the tune of ₹5 crore for allegedly carrying out mining activity of earth minerals in Valsad.

A single-judge bench observed that the Assistant Geologist of Valsad passed the impugned penalty order on July 29, 2024, even before the show-cause notices dated July 20, 2024, were delivered to the petitioner.

Records showed that the notices were dispatched on July 22, 2024, but reached M/S Punit Infra only on August 8, 2024. The court noted that no effective hearing was granted to the petitioner, nor was any opportunity provided to file a reply.

"The order is in breach of principles of natural justice and cannot be sustained in law," the court ruled, while setting aside the penalty order.

The penalty order was also silent on any hearing afforded, replies filed, or contentions raised by the petitioner. The Assistant Geologist's affidavit-in-reply failed to address the date of delivery of the notices or dispute the petitioner's tracking report confirming receipt on August 8, 2024.

However, the court clarified that it had not examined the merits of the case and granted liberty to the Assistant Geologist to initiate fresh proceedings in accordance with the law, if deemed appropriate.