Supreme Court Authorizes States to Collect Past Mining Royalties
States can recover dues from as far back as 2005 without imposing penalties, impacting multiple industries.
- The ruling allows states to collect past dues on mining royalties from April 1, 2005.
- Payments will be staggered over 12 years starting April 1, 2026.
- States are prohibited from imposing penalties or interest on these dues.
- The decision could result in tax demands up to ₹2 trillion, affecting sectors like power, steel, and cement.
- Industry experts predict significant economic impact and potential for further litigation.