The Supreme Court on Monday questioned the Union government why it did not create District Mineral Foundation (DMF) in addition to special purpose vehicle (SPV), set up for reclamation and regeneration of the environment that suffered damage due to excessive mining in mineral-rich areas in Karnataka.

A three-judge bench presided over by Justice Ranjan Gogoi asked Additional Solicitor General N K Kaul, appearing for the Centre, why the government did not amend Section 9B of the Mines and Minerals (Development and Regulation) Act, 1957, in the manner so as to incorporate the SPV ordered by the apex court on September 28, 2012.

The court had then directed for creation of the SPV utilising 10% of the total receipt of the sale of iron ores, while favouring resumption of mining operations in ‘B’ category mines in Ballari, Chitradurga and Tumkuru districts. The court was on Monday hearing a plea by the Federation of Indian Mineral Industries (FIMI), argued by senior advocate C A Sundaram, for doing away with the SPV in view of the creation of the DMF after amendment to Section 9B of Mines and Minerals (Development and Regulation) Act, 1957, on March 26, 2015.

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