Sindh High Court on Monday issued notice to Secretary, and Director-General, Sindh Mines & Minerals Department, on inviting bids to award contract for collection of royalty on minerals at inflated rates.
Advocate Zaheerul Hassan Minhas submitted that his client Raza Hussain was awarded contract to collect royalty on Reti-Bajri, ordinary stone, ordinary sand, limestone, gravel, morum, marble, silica sand and other minerals for one year in Karachi and Khairpur. But, heavy rains, breaches in safety river embankments last year inundated whole area from where minerals were to be collected.
He stated that DG Mines & Minerals Department on May 30, 2011, issued public notice, inviting applications for award of contract to collect royalties on minerals on basis of 10 percent increase in reserve price declared for previous year. He placed on record some documents submitting that respondents had admitted royalty collection rights had reached at saturated point where no further increase in reserve price is possible, therefore, 10 percent increase in reserve price was mala fide and aimed to make it on feasible for prospective bidder and to retain such rights by department to fill its own kitties.
The counsel stated that Mines & Minerals department authorities deliberately enhanced this amount to keep contractors away from royalty collection and collect the same at its own. It was prayed to hold that enhancement of price was violation of laws. A division bench, headed by Justice Sajjad Ali Shah, issued notice to Secretary, DG Mines & Minerals Department, and Advocate General Sindh, for June 16, 2011. However, respondents were directed to continue process of receiving bid as per schedule.
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