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Whether an illegal transfer of mining lease was involved?

Whether transformation of partnership into company and transfer of lease rights to such company has to be seen with the next transaction of transfer of the entire shareholding to a third company for a price?

Whether on this basis the State is justified in cancelling the lease which the High Court has quashed?


The Court opined that the partnership firm holding leasehold rights has successfully transferred the said rights to a third party for consideration in the form of share price which is nothing but the price for the sale of mining lease which is not allowed and for which no permission has been granted and which is patently illegal.

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