Overview

• The Supreme Court ruled that states have the power to levy royalties on mineral-bearing lands.
• The majority verdict stated that royalty is a contractual payment, not a tax.
• Justice BV Nagarathna dissented, warning of potential negative economic impacts and federal system breakdown.
• The decision overturns a 1989 ruling that classified royalty as a tax.
• This ruling benefits states like Odisha, Jharkhand, and Chhattisgarh with substantial mineral resources.