This document provides an overview of the Forest (Conservation) Act of 1980 and its ramifications for mining leases in India. Some key points: - The Act aims to conserve forests and requires central government approval for diversion of forest land for non-forest uses like mining. - Mining leases granted before 1980 don't require approval to mine already broken land, but new breaking of forest land does. Renewed leases also require approval. - The Act applies to all recorded forest areas, not just those notified as such. It restricts de-notification and assignment of forest land. - Case law has established the Act seeks to prevent deforestation and that its provisions must be compl

2. WELCOME TO THE PRESENTATION
ON
FOREST (CONSERVATION) Act, 1980 –
RAMIFICATION WITH MINING LEASES

3. CONSTITUTIONAL PROVISIONS
RELATED TO FOREST & WILDLIFE
At the time of promulgation of the
Constitution of India, subject of “forests” and
‘wildlife’ were kept in the State List.
“Forests” transferred to the “Concurrent
List”, List-III as Entry–17A and ‘Wildlife’
inserted as Entry-17B by the 42nd
Constitution Amendment Act, 1976.
Article-251 & 254 of the Constitution
provides that state statutes cannot be
repugnant to Central Acts. If there is any
repugnancy, it automatically becomes “null
& void”.

4. PRECARIONS CONDITION OF MINING UNDER THE CONSTITUTION OF INDIA
(SCHEDULE – VIII)
Environment & Residuary
Power
Entries–6,24,27,53, 54 & 97
Union List, List-I
SPCB’S/PCC’S Under
State Government
Mines & Mineral Development
Entry – 54,
List-I, Union List
Entry – 50, List – II
State List
Forest & Wildlife, Land
Entries – 17 A, 17B
Concurrent List
List – III
Entry – 18 State List, List-II
Articles – 245 to 254 deal with Union-State relations. Sometimes
Statutes have overlapping jurisdictions; rarely repugnant also.
Constitutional amendments shall take very long time.
Thus efficiency and attitude of civil services &
assessment agencies are the key words for success.

5. STATUTORY LEASES / CLEARANCES FOR
MINING
Following statutory leases / clearances are mandatory for
mining operations:
• Valid legally operative “mining lease / permit” under the provisions of
the Mines and Minerals (Development and Regulation) Act, 1957 or
State Minor Mineral Rules.
• "Forest Clearance" under Forest Conservation Act, 1980.
• “Environmental clearance" under the Environment Impact Assessment
Notification, 2006 if mining of "major mineral" is involved and the area
is more than 5 hectare.
• In case of mining projects, a “site clearance" is required which is also
issued either by the Central Government or the State Government. Sites
involving less than 5 ha. areas can be cleared at the State level itself and
only those above 5 ha. areas of land are required to be submitted to the
Central Government.

6. STATUTORY CONDITIONS FOR MINING LEASES
Applicability of Forest Conservation Act, 1980 to the forest area to be broken
up after 25.10.1980 under a continued mining lease. In the context the
MOEF, GOI clarified that -
(i) In respect of mining lease granted / renewed before 25.10.1980 prior approval of
the GOI under the FCA will not be required for continuing mining activities in
areas already broken up before 25.10.1980 during continuance of the lease
period.
(ii) In respect of mining leases granted / renewed before 28.10.1980, if area is to be
broken up afresh after commencement of the Act i.e. 25.10.1980, prior approval
of the GOI will be required under the FCA, even during the continuance of lease
period.
(iii) The prior approval of the GOI under Section-2 of the FCA would be required
when the mining lease granted before commencement of the Act is renewed
after its coming into force. It applies even to such cases where mining is to be
continued in already broken up areas.

7. • Stockholm Conference (1972) recommended up-gradations
of legislative measures.
• National Agriculture Commission (1976) expressed anxiety
over depleting forest cover.
• About 32 million hectares forest land diverted for non-forest
purposes (1956-1980).
• Average rate of diversion (pre–1980 period) – 1,75,000
ha./annum.
BACKGROUND OF ENACTMENT OF FCA

8. ENACTMENT OF
FOREST CONSERVATION ACT, 1980
• Promulgated as Presidential Ordinance on 25th
October, 1980 (not 24th October, 1980 as popularly
believed)
• Replaced by an Act of the Parliament on 28th
December, 1980.
• FCA has been amended in 1988, Section – 2(iii), 2(iv)
and 3A & 3B inserted to deal with violations.
• Forest (Conservation) Rules framed in 1981, amended
in 1988 and 1992.
• Forest Conservation Rules, 1981 repealed in 2003 and
replaced with Forest (Conservation) Rules, 2003.

9. ESSENCE OF
FOREST (CONSERVATION) ACT,1980
• The title of FCA suggest “conservation” oriented
legislation but intention and spirit is regulatory in
nature. The FCA is not “prohibitory” in nature.
• Applicable to the whole of India except State of J&K.
The J&K Forest Conservation Act, 1986 apply to the
State of J&K, salient features of both the Acts are
similar.

10. Continue…
• The spirit of FCA provides that the “cases” should be
examined by the MoEF, GOI on various parameters
before sanction is accorded. But these parameters
have not been defined in the FCA.
• One of the briefest Acts of the Union of India – leads
to lot of scope for judicial review and interpretations.
There is nothing wrong with the provisions but
misleading & topsy turvey interpretations have led
to controversy and consequently FCA has been
widely criticized.

11. Salient provisions of FCA
• The FCA broadly covers 4 aspects of forest
management
• The following orders can be passed by State
Governments / competent authorities, only after the
concurrence of the MoEF, GOI:
(i) De-notification of forest land - (prior approval required to
issue notification under Sections – 27 & 34A of Indian
Forest Act, 1927).
(ii) Diversion of “forest land” for “non-forest” purposes –
diversion for non-forest purposes, mining lease granted
under this sub-section (forest land being diverted for
forest management is exempted from this provision) –
Explanation inserted below Section-2.

12. Continue…
(iii) Assignment of forest land to persons, individuals,
corporate bodies, JVC, Committees, Societies, etc.,
(except forest land provided to wholly Government
owned companies for afforestation of forest species).
(Recently 4 sanctions granted to Govt. of Andhra
Pradesh).
(iv) Forest crops cannot be felled / treated except under a
duly approved working plan. The deviations of
sanctioned prescriptions also require sanction of
MoEF, GOI.

13. Applicability of FCA
• The terms “forests” and “forest land” have not been
defined neither in IFA nor in FCA
• These terms have been defined in the order dated
12.12.1996 of the Hon’ble Supreme Court (Civil Writ
Petition 202/95, T.N. Godavarman Thirumulkpad ver.
Union of India & others)

14. APPLICABILITY OF F.C.A
State Forest Deptt. State Revenue Deptt. Other Deptts./
Ministries
RF
PF (demarcated
& un-demarcated
both)
Village forests
Unclassed
forests (areas
notified under
Section – 4 of
IFA)
Revenue forests
Panchayat forests
Any area recorded
as “forests” in
Government
records
Area defined as
“forests as per
dictionary meaning
Private forests
All diverted
forest land if not
de-notified e.g.
dams, mines,
FFR, TPR etc.,
Forest areas of
dams &
reservoirs
Forest land
provided on
lease.

15. BROAD PARAMETERS FOR APPLICABILITY OF
F.C.A
• The area should be recorded as “forest” in any
Government records.
• The area should conform to dictionary meaning of
“forests” or any other definitions provided by the
State Government after order dated 12.12.1996.
• Fresh breaking of land is involved.
• Transfer of lease rights from one person to another.

16. SECTION -2 (i)
DE-NOTIFICATION OF FOREST AREA u/s 27 & 34A OF
INDIAN FOREST ACT, 1927
• FCA abridges statutory powers of Forest Settlement
Officer / Forest Court / District Collector / State
Government to delete and de-notify any forest area.
• The provisions apply to all kind of “forest lands”
including forest land under State Revenue
Department.

17. SECTION-2(ii) DIVERSION OF FOREST LAND FOR
NON-FOREST PURPOSES
• Prior approval of Govt. of India is mandatory to carry-
out non-forest activity (including mining). Section-2(ii)
important linkage with Section-8(2) of MMDR Act, 1957.
• Cultivation of tea, coffee, spices, rubber, palms, oil
bearing plants, horticultural crops, or medicinal crops
regarded as non forest purpose under F.C.A.
• Forest / wildlife management related operations -
exempted from this provision.

18. Continue…
• Sanctions / operations of mining (other leases) {MMDR
Act, 1957 or CBA (A&D) Act, 1957 or State Minor Mineral
Rules or Mineral Surry and Petroleum Pipelines (ARUL)
Act, 1962}.
• Renewal of all sorts of leases / assignments shall require
prior approval under FCA i.e. all leases expired before
24.10.2010 and requiring renewal.
• Breaking of forest land after promulgation of FCA (i.e.
25.10.1980) not allowed except under “forest clearance”.

19. Continue…
• Status of forest land does not change after diversion.
• Ownership of forest crop raised on diverted forest land is
remained vested in State Forest Department.
• Legal status of water bodies still remain “forests” –
issuing agricultural pattas in draw-down portion
prohibited.
• No restriction on genuine “Nistar” rights-but assignment
of forest land prohibited.
• Extension of plinth area in private forests attracts FCA.

20. Continue…
• Mineral removal after expiry of mining lease / forest
clearance is prohibited.
• Applicability of FCA to forest areas notified under
blanket notifications.
• Applicability of FCA to forest villages.
• Applicability of FCA to the land diverted for refugee
settlements.

21. SECTION -2 (iii) ASSIGNMENT OF FOREST
LAND
• Covers wide spectrum of activities, even certain
provisions of JFM / CFM / tree patta schemes
contravene provisions of FCA. This provision has not
been put to acid test of judicial review.
• Not applicable to grant of forest clearance to mining
activities.

22. SECTION – 2 (iv) TREATMENT OF FOREST CROP UNDER
DULY SANCTIONED WORKING PLAN IS MANDATORY
• The W.P. should be implemented in essence and
spirit.
• Carrying out only main fellings (without regeneration
& subsidiary operations) and ignoring other
operations tantamount to violation.
• Deviations require prior approval of MoEF.
• It is mandatory to implement conditions imposed in
sanctions.

23. INTERPRETATIONS OF FCA
Scope – FCA covers all diversions, silviculture /
management of forests, leases/ assignment of
forest land and denotifications.
Notification as RF not necessary – covers all
RF, PF, unclassed forests and areas under
blanket notifications.
Legal Status- Forest land diverted is not
denotified; revert back to FD after lease is over.
Forest Leases / Assignments – attracts
provisions of Section-2(iii) of FCA.

24. • Section-2 of the FCA abridges powers of FSO, Forest Court
& State Government – When interpret Section-2 of FCA
and Section-5 to 19, 27, 33 and 34 of the IFA - any area
notified under Section-4 or 29 of IFA cannot be de-
notified unless prior approval under Section-2(i) of FCA
has been obtained.
• Invoking of restrictions on transfer of forest land to
persons organisation, committee, trust, companies etc.
[Section-2(iii)].
• Principle of “Natural Justice” and Fundamental Rights in
Forest Conservation Act cases applies.

25. • Breaking up of forest land after promulgation of FCA not
allowed.
• Breaking of forest land when it has been notified under
Section-9 of Coal Bearing Areas (Acquisition &
Development) Act, 1957; not allowed after 25.10.1980.
• Projects involving both forest land and non-forest land;
require FCA clearance.
• Status of forest land after it has been diverted under
Section-2(ii) of FCA, continue to remain forest.
• Legal status of water bodies formed as a result of the
submergence of forest lands.
• Ownership of the forest crop raised on diverted forest
land vested with Forest department.

26. • Prior approval of the Central Government for
harvesting of plantations on Government land is
mandatory.
• Applicability of Forest (Conservation) Act, 1980 in
respect of building construction on private forest
lands.
• Cases of violation of Forest Conservation Act, 1980
vis-a-vis Indian Forest Act, 1927 / State Forest Acts.
• Removal of mineral after the expiry of lease or "forest
clearance" from the lease area.

27. • Applicability of the Section-2(iii) of FCA to assignment of
forest land to corporations, JFM Committees, trusts,
authority or quasi-government bodies.
• Applicability of blanket notifications to forest lands.
• Applicability of FCA on forest villages.
• Applicability of FCA on draw-down portion of
submergence area of Multi-purpose River Valley Projects.
• Applicability of FCA on the areas utilised for settlement of
refugees of erstwhile East Pakistan & Tibet.

28. CASE STUDIES OF F.C.A.
• "We are, therefore, of the view that while before
granting permission to start mining operations on a
virgin area Section-2 of the Act, has to be complied
with, it is necessary to seek the prior approval of the
Central Government for purposes of carrying out
mining operations in a forest area which is not
broken up or cleared before the commencement of
the F.C.A.".
State of Bihar ver. Banshi Ram Modi,
AIR 1985, SC 814,

29. "18. The aforesaid observations have been set in detail in order to understand
the true ratio of the said decision in the background of the facts of the case. It is
true that this Court held that if the permission had been granted before the
coming into operation of the 1980 Act and the forest land has been broken up or
cleared, Cl. (iii) of Section-2 of 1980 Act would not apply in such a case. But that
decision was rendered in the background of the facts of that case. The ratio of
any decision must be understood in the background of the facts of the case. It
has been said long time ago that a case is only an authority for what it actually
decides, and not what logically follows from it.

30. This Court observed in that decision that the result of
taking the contrary view would be "that while digging
for purposes of winning mica can go on, the lessee
would be deprived of collecting felspar or quartz which
he may come across while he is carrying on mining
operation in winning mica. That would lead to
unreasonable result which will not, in any way,
subserve the object of the Act. There was an existing
lease where mining operation was being carried on
and what was due by incorporation of a new term was
that while mining operations were being carried on
some other minerals were available, he was giving
right to collect those. The new lease only permitted
utilisation or collection of the said other minerals.

31. • The main purpose of the legislation of the Forest
(Conservation) Act, 1980 is to prevent further
deforestation and environmental degradation.
• The spirit and intention of the Forest (Conservation) Act,
1980 is to usher an era of balanced development and
progress without causing deforestation and having
adverse effect on the environment.
• With a view to check further deforestation, the Forest
(Conservation) Ordinance, 1980 had been promulgated on
25th October, 1980. The present Act replaced the said
ordinance and contains the similar provisions.
Ambica Quarry Works ver. State of Gujarat,
AIR 1987, S.C. 1073 : (1987)1 S.C.C. 213.

32. • The Act has been amended in 1988 to incorporate
penal provisions for the violation of the Section-2 of
the F.C.A.
• The Forest (Conservation) Act extends to the whole of
India except the State of Jammu & Kashmir and came
into force on 25th October,1980.
Renewal of mining lease is tantamount to
acquisition of new rights and cannot be
granted, except under prior approval of
MOEF, GOI.

33. Hyderabad Abrasives & Minerals ver. Govt. of A.P. & Others,
(1986) 2 Andhra LT p. 62.
• In Hyderabad Abrasives & Minerals ver. Govt. of A.P. &
others, the Andhra Pradesh High Court held that
whereas the mining lease had been granted to a
person in a forest area before the commencement of
the Forest (Conservation) Act, on 25.10.1980 an
application for permission to clear forest cover made
in 1982 can be granted only after obtaining approval
from the Central Government under the Forest
(Conservation) Act, 1980.

34. Uttar Pradesh Gandhi Smarak Nidhi Vyavasthapak ver.
State of U.P.,
1988, Allahabad L.J., 149, p.152.
• The law is well-settled that any non-forest activity in the
forest area without prior approval of the Central Government
is banned. For grant of mining lease or renewal of mining
lease for non-forest activity, the provisions of Section-2 of the
FCA has to be complied with, before grant or renewal of
mining lease.
• There is no distinction as to whether the mining area has been
broken or not, even if the area has been broken in terms of
earlier lease, unless mining lease is renewed after complying
with the requirement of Section-2 of the FCA meaning
thereby only after prior approval of the Central Government;

35. • Notification of forest land as 'reserve forest' not necessary -
The Forest (Conservation) Act, 1980 could apply to any forest
land, its notification as a "Reserved Forest" (R.F.) under
Section-20 of the Indian Forest Act, 1927 is not necessary for
the application of the FCA.
• A mere reading of Section-2 of the FCA clearly shows that prior
approval of the Central Government is mandatory as well as a
pre-condition of the grant of lease of forest lands for non-
forest purposes.
• It is admitted beyond doubt that a mining lease is meant for
non-forest purpose.
• The impugned order states that the grant would be subject to a
special condition that the commencement of quarrying
operation should be done only after obtaining concurrence of
MOEF,GOI.

36. National Thermal Power Corporation versus Delhi
Development Authority
AIR; March, 1983.
 Meaning of expression 'forest' and 'forest land' - Any area notified under
Section-4, 20, 28 and 29 attracts provisions of the Forest Conservation Act,
1980.
 The FCA Guideline 1.1.(i) has made it clear that any area notified under
Section-4 also comes under purview of Forest (Conservation) Act, 1980. The
Forest (Conservation) Act, 1980 could apply to any forest land, its notification as
a 'Reserve Forest' (RF) under Section-20 of the Indian Forest Act, 1927 is not
necessary for the application of the same.

37. • A question has been raised regarding applicability of the Forest
Conservation Act on the undemarcated forests. The "Reserve
Forests" notified under Section-20 is always demarcated forests.
• The question of applicability of FCA to undemarcated forests has
been answered in the order dated 12.12.1996 of the Hon’ble
Supreme Court (Civil Writ Petition 202/95, T.N. Godavarman
Thirumulkpad ver. Union of India & others).
• But as far as "Protected Forests" are concerned, it requires some
clarifications. The first Indian Forest Act, 1865 (Act-VIII of 1865)
was placed on the Statute Book in 1865 ; which was replaced by
Indian Forest Act, 1878 (Act-VII of 1878). The Indian Forest Act,
1878 was replaced in 1927 and several blanket notifications have
been issued.

38. A. Invoking of restrictions on transfer of forest land
to persons, organisations, committee, trusts, companies etc.
B. Section-2(iii) of the Forest (Conservation) Act, 1980
restricts the powers of State Government to transfer or create
any rights or privileges in or over a forest land or a
portion of forest land either by a lease (for collection of forest
produce) or otherwise.
N.B. Hakku Sthapna Samiti ver.
State of Karnataka
(1997) 3 Karnataka LJ, p. 279.

39. • The expression 'otherwise' will, include
assignment of rights even by way of easement
or licence.
INFERENCE
Forest land cannot be assigned to any person,
organisation, company, trust, committee or
company without obtaining clearance under
Section-2(iii) of Forest Conservation Act.

40. The Forest Conservation Act, 1980 applies to renewal of leases as well
and even if there was a provision for renewal in the lease agreement on
exercise of lessee's option, the requirements of FCA had to be satisfied
before such renewal is granted.
The expression "forest land" has not been defined under the
Indian Forest Act, 1927 or under the Forest Conservation Act, 1980.
Section-3 of the Indian Forest Act 1927; however, provides some clue to
its meaning. The Section-3 of Indian Forest Act, 1927 empowers the
State Government to declare any forest-land or waste land belonging to
the State as a reserved forest. This means that the "reserved forest" can
comprise of forest-land as well as waste land. In turn it means that on
de-reservation of "reserved forest" the land would be forest land or
waste land depending upon its functional status at the time when it
was notified as reserved forest.

41. This appeal by special leave arises from the order of the Division Bench
of the Andhra Pradesh High Court dated July 7th, 1995 made in Writ
Appeal No. 96/94. The admitted facts are, that the respondent had a
mining lease granted by the Director of Mines on September 18, 1979
to extract minerals from the forest area for five years, i.e. upto
September 12, 1984. The Forest Conservation Act, 1980 came into
force on October 25th, 1980. Therefore, by the date of the expiry of the
lease, the authorities were denuded of the power to grant renewal of
the mining lease without obtaining "forest clearance" under Forest
Conservation Act, 1980.
S.NAGESHWARAMMA
VERSUS
DIVISIONAL FOREST OFFICER

42. Lease is right to extract minerals and the renewals
should be in accordance with the law in operation
as on the date of renewal. Renewal of lease being
not a vested right, the application for renewal
must be disposed of according to law prevailing as
on the date. On expiry of the lease period, on
September 13, 1989, an application filed for the
renewal thereof. It would be obvious that the
renewal was in violation of Section-2 of the Forest
Conservation Acts ; since, admittedly, the prior
approval of the Central Government was not
obtained.

43. Consequently, the Forest Department in the joint
inspection made on February 7, 1990 discovered that
the respondent was extracting mineral within the
forest area and, therefore, they issued directions for
canceling the lease. Consequently, the respondent
filed writ in the High Court. After the joint survey was
conducted under the direction of the High Court. The
High Court directed the respondents to carry on
extraction of the stacked material from the leased out
area subject to the respondents obtaining prior
approval of the competent authority.

44. It was contended by learned counsel for the respondent,
that what the respondent has been denied is not making
any fresh extraction of the mineral in the forest area but
only the removing of the stacked minerals from the
surface of the earth that too, with the permission
granted by the authorities ; the direction issued by the
High Court in the impugned order, therefore, is incorrect
in law. But the Hon'ble Supreme Court found no force in
the contention. The learned Judges have proceeded on
the premise that the respondent is entitled to extract
and remove minerals, said to be stacked on the ground
that the lease is a valid lease; otherwise he does not get
any right. The premise on which the Division Bench has
proceeded is obviously illegal.

45. It is a total prohibition, unless the state Government
grants mining lease with the prior concurrence of the
Central Government. Admittedly, the prior concurrence
of the Central Government had not been obtained. The
learned counsel placed FCA guidelines issued by the
MOEF, GOI before the Hon'ble Supreme Court. Therein,
the question is of the clearance of the projects by the
State Government without obtaining the prior
concurrence of the MOEF, GOI. In that behalf, it was
mentioned that the renewal of the mining leases, if they
are within particular radius was directed to be done
without any fresh breaking up of fresh area and felling
of the trees but subject to re-forestation. In this case
that situation does not arise.

46. This is a case of grant of renewal in routine way.
Under these circumstances the direction issued by
the Division Bench of the High Court is clearly
illegal. The appeal is accordingly allowed.
INFERENCE
In the light of the order of the Hon'ble Supreme
Court, it is mandatory to obtain prior permission
of the MOEF, GOI to extract minerals from the
already stacked material, if the "forest clearance"
under the FCA has expired.

47. T.N. Godavarman ver. Union of India,
AIR 1997, SC 1226 (1997); 2 Supreme To-day p. 221.
• "The Forest Conservation Act, 1980 was enacted with a view to
check further deforestation which ultimately results in ecological
imbalance ; and therefore, the provisions made therein for the
conservation of forests and for matters connected therewith,
must apply to all forests irrespective of the nature of ownership
or classification thereof. The word "forest", must be understood
according to its dictionary meaning. This description covers all
statutorily recognised forests, whether designation as reserved,
protected or otherwise for the purpose of Section-2(i) of the
Forest Conservation Act. The term "forest land", occurring in
Section-2, will not only include "forest" as understood in the
dictionary sense, but also any area recorded as forest in the
Government record irrespective of the ownership.

48. •This is how it has to be understood for the purpose of Section-2 of the Act.
The provisions enacted in the Forest Conservation Act, 1980 for the
conservation of forests and the matters connected therewith must apply
clearly to all forests so understood irrespective of the ownership or
classification thereof. This aspect has been made abundantly clear in the
decisions of this court in Ambica Quarry Works and Ors versus State of
Gujarat and Ors. (1987 (1) Sec-213), Rural Litigation and Entitlement Kendra
versus State of U.P. [1989 Suppl. (1) Sec-504], and recently in the order
dated 29th November, 1996 in W.P.(C) No. 749/95 (Supreme Court
Monitoring Committee Vs. Mussorie Dehradun Development Authority and
Ors. The earlier decision of this court in State of Bihar versus Banshiram
Modi and Ors,[(1985(3) Sec-643] has, therefore, to be understood in the
light of these subsequent decisions.
We consider it necessary to reiterate this settled position emerging from the
decision of this court to dispel the doubt, if any, in the perception of any
State Government or authority."