The Bombay High Court at Porvorim, with Justices M.S. Karnik and Nivedita Mehta, has ruled that three mining companies must pay Rs. 2 crores to the District Mineral Fund. This payment is for damage caused to agricultural lands in Sirigao village. A copy of the judgment is can be downloaded here.
The companies involved are Sesa Mining Corporation, Rajaram Bandekar, and Chougule and Co. All three held mining leases that covered parts of Sirigao.
In the same judgment, the Court also closed Writ Petition 1/2008. This petition began as a letter from villagers in Sirigao complaining about damage to their farming lands, especially the Savat and Kharat Khazans.
Earlier, the companies had deposited Rs. 2 crores. The Water Resources Department had estimated the total damage at Rs. 4 crores. To begin repair work, the remaining Rs. 2 crores was taken from the District Mineral Fund (DMF), with the understanding that the companies would later repay this amount.
However, the companies argued that they should not have to pay the rest. They said they already contributed to the DMF, and that the DMF should be used to fix environmental damage caused by their mining. The Court strongly disagreed.
The judges said that under the “polluter pays” principle, the companies themselves must bear the cost of the damage. It is not the government’s job — or the taxpayers’ — to cover these costs. The Court made it clear: mining is a hazardous activity that naturally causes pollution and affects nearby people. The companies cannot hide behind the DMF and avoid responsibility.
The Court rejected the argument that DMF contributions should cover pollution-related expenses. It said this would amount to using public funds to protect polluters. The purpose of the DMF is to help communities affected by mining, not to shield mining companies from their obligations.
Towards the end of the case, the companies continued to deny they were responsible for any damage, even though reports from NEERI and government departments showed otherwise. They claimed villagers were more interested in compensation than farming.
The State of Goa, represented by the Advocate General, settled the matter by showing an agreement signed by the companies. This agreement clearly said that they would be responsible for any damage caused by their operations, even outside their lease boundaries.