Supreme Court Affirms States' Authority to Levy Mineral Royalties
Landmark 8:1 decision clarifies distinction between royalty and tax, with significant implications for mineral-rich states.
- 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.
NDTV 
