Nov 18 (Dna): The mining companies in Goa, including Vedanta, have once again come under the scanner of Supreme Court, which agreed to examine the procedure followed by the state government for renewal of leases to these firms.

Renewal of 89 mining leases by the state government was challenged by the NGO Goa Foundation before the court on the ground that it was against the court's earlier orders.

A bench headed by Justice J S Khehar issued notices to the state government and the mining firms directing them to file response.

Advocate Prashant Bhushan, appearing for the NGO, contended that the apex court had last year ordered that all mining licences granted for 50 years which had expired in 2007 would not be given automatic renewal.

The renewals prima facie disclose mala fides, collusion between mining companies and the state authorities, circumvention and violation of this court's April 21, 2014, order and the provisions of the Mines & Minerals (Development and Regulations) Act.

"...The renewal could only have been carried out if they were in the interests of mineral development of the state, and if no other firms available in the process of extraction," Bhushan said.

He submitted that leases were granted to all those firms which were involved in illegal mining activities that led to the court's stay order on October 5, 2012, and the judgment in April last year.

Further, he said the mining firms should stand in queue for competitive bidding along with other applicants and apply to get environment clearance afresh. The Goa government, however, violated the order and allowed the miners to operate without auction or competitive bidding, he said, citing that leases have been allotted to Chougules and Co Pvt Ltd, which has received 10 mining leases; three companies of Sesa Goa (Vedanta) have procured 22, Fomento got seven and V M Salgaonkar and Bros 10 leases.

The Goa government counsel countered the allegations saying the renewal was done as per the law, and there was no nexus between the companies and the authorities.

The apex court had held last year that the state government instead of renewing expired mining leases should follow the auction process and additionally had also asked the mining companies to obtain fresh environment clearances.

Iron ore mining has been closed in Goa sine 2012 following the court order.

But between November 2014 and January 2015, Goa government renewed 89 mining leases. Later in March, the Union Ministry of Environment, Forest and Climate Change allowed mining to resume after it granted environmental clearances to 72 mining leases, that were earlier kept in abeyance.

Subsequently, the Goa State Pollution Control Board granted 57 mining leases consent to operate permissions to mine 13.79 million tonne of iron ore. The SC has set of cap of extracting 20 million tonne per annum.