Cuttack, March 14: Orissa High Court has quashed a central government's order that revoked a forest clearance granted by it to Essel Mining and Industries Limited for extracting iron ore from an area of 173 hectares in Keonjhar district.

Initially, the Centre had granted the clearance for diversion of forestland for mining. But later, it revoked it following a request from the state government.

The court quashed the order on the ground that it had not complied with the principles of natural justice.

According to the case records, Essel had been granted mining lease for extraction of iron ore over an area of 294.44 hectares for 30 years on September 14, 1955. Essel had applied for first renewal of the lease for a further period of 20 years over a reduced area of 194.196 hectares on July 25, 1984. Thereafter, an application for second renewal was made for 20 years on September 2, 2004 over an area of 194.196 hectares.

Of 194.196 hectares, about 173.039 was forestland. The state government gave approval for the forestland area on November 4, 2010. The Centre granted clearance for the entire 173.039 hectares of forestland on November 18, 2011.

Consequently, Essel went ahead with mining activities in the area. However, the Union ministry of environment, forests and climate change revoked the order on January 8, 2015, on receipt of a request from the Odisha government. Essel filed a petition seeking quashing of the order.

Allowing Essel's petition, the court said: "It is well settled law that once a right has accrued in favour of a party, the same can be withdrawn only after complying the principles of natural justice."

While revoking its order, the central government had not assigned the reason why the approval already granted was being revoked.

No show-cause notice or opportunity of hearing was given prior to passing the order.

"Since we are of the firm opinion that in the present case, neither the principle of natural justice has been complied nor any reason whatsoever has been assigned in the order for revocation of the earlier approval on November 18, 2011, we hold that the said order of revocation deserves to be quashed," the division bench of Chief Justice Vineet Saran and Justice B.R. Sarangi ruled in its March 2 order, a copy of the full text of which was made available today.

"The objection of the state government was for an area beyond 134.733 hectares and not for the entire 173.039 hectares area," the judges observed.

According to records, while requesting for revoking the forest clearance granted on November 18, 2011, for use of 173.039 hectares forestland, the state government in its letter on January 25, 2014, had mentioned that Essel may be advised to apply for approval of a reduced lease area of 134.733 hectares.