Orissa High Court orders reconstitution of Mineral Foundation with PRI members of mining affected pockets

The Orissa High Court has partially quashed the constitution of district mineral foundation in mineral-rich Jajpur district and directed the Government to constitute the foundation by inducting three members of the Gram Panchayats from an area where the major mineral concession is situated.

The writ petition filed in this regard had challenged the Notification dated 24th July, 2025 whereby, the Government reconstituted the Board of Trustees of “the District Mineral Foundation for the District of Jajpur”. The board comprised 17 persons including the Sarpanch of Pimpudia Gram Panchayat, Sarpanch of Haripur Gram Panchayat and Sarpanch of Dhuligarh Gram Panchayat.

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Since the mines are situated within the territorial jurisdiction of Kaliapani Gram Panchayat, Kansa Gram Panchayat and Ransol Gram Panchayat, inclusion of Sarpanch of the other Gram Panchayats is contrary to Rule 4 of the ODMF Rules, the petition pointed out.

The object and the functioning of the Foundation is a distinct feature than the constituents of the Foundation. Once three Members of the Gram Panchayats are to be included in the body of the said Foundation from an area where the major mineral concession is situated, inclusion of any Member of the Gram Panchayat of the adjoining villages where the said mine is not situated is ruled out.

“We find that the inclusion of the Sarpanches of the nearby/adjoining Gram Panchayats, where the mine is not situated is contrary to Clause (vi) of sub-rule (1) of Rule 4 of the said ODMF Rules. Therefore, the notification dated 24th July, 2025 is partially quashed to the extent of inclusion of the Sarpanches of three Gram Panchayats as Members of the said Foundation. The Development Commissioner-cum-Additional Chief Secretary to the Government of Planning and Convergence Department is directed to reconstitute the said Foundation strictly in terms of Clause (vi) of sub-rule (1) of Rule 4 of the said Odisha District Mineral Foundations Rules, 2015, within a period of four weeks from the date of communication of this order”, the Division Bench of Chief Justice Harish Tandon and Justice Raman ruled in an order updated on HC’s website on Monday.