By S A Ishaqui
Hyderabad, Nov. 27: The Andhra Pradesh High Court on Friday asked the state government to explain under what authority it asked the Obulapuram Mining Company to stop its operations without issuing it notice or hearing its version.
A division bench comprising Justice T. Meena Kumari and Justice P.V. Sanjay Kumar raised the question with the advocate-general, Mr D. Seetharam Murthy, while dealing with a petition filed by OMC challenging the Government Order of November 25 suspending mining operations and transportation of iron ore.
“The lease given to the OMC is in accordance with a statute and your suspension order too should be in accordance with a statute,” said the bench.
Though the AG said the state had inherent power to act instantaneously, the Bench did not accept that. Mr K. Raghavacharyulu, the senior counsel for OMC, said a member of the SC’s central empowered committee had written to the government ordering it to stop the OMC operations and the government blindly obeyed it. Mr Raghava-charyulu urged the court to allow OMC to lift the leftover iron ore. While the AG said that OMC can lift the stock by paying Rs 6 crore per day, OMC said it can pay Rs 2.25 crore per day.
The Bench asked OMC to deposit a lumpsum guarantee of Rs 30 crore with the director of mines for the next two weeks.
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