Excess Excavation Alone Cannot Trigger Mineral Royalty

The Bombay High Court has quashed a royalty demand imposed on a developer merely because construction produced excess excavation. Justice Arun R. Pedneker held that excavated earth becomes a minor mineral for royalty purposes only when its use for a notified end product is established. Excavation is a natural part of construction, and some soil may be retained for refilling. The authorities had not demonstrated the material’s end use or drawn a legally sustainable inference that it was transported and commercially used as a minor mineral. Excess quantity, standing alone, could not support the levy. The court applied the Supreme Court’s ruling in Promoters and Builders Association of Pune, set aside the impugned order and allowed the writ petition on 28 September 2026.