The Gwalior High Court has taken a tough line against the Madhya Pradesh government over allegations of collusion between mining officials and the mining mafia, asking why lease holders who failed to pay massive penalty dues were still being granted fresh mining rights. The court’s sharp remarks came during the hearing of a public interest litigation filed by petitioner Akram Khan.

A division bench of Justice GS Ahluwalia and Justice Pushpendra Yadav questioned the state on why recovery had not been made from miners who owe ₹305.97 crore in penalties for illegal mining. The court also asked on what basis such defaulters were allowed to regain mining leases instead of being blacklisted and stopped immediately, as required under the rules.

According to the petition, the penalty amount has been pending since 2017, but the mineral department has failed to recover it. The plea says that despite defaulting on dues, the mining operators were not only allowed to continue but were also given fresh leases in new areas, effectively ignoring their unpaid penalties.

The petition further claims that the defaulters’ existing quarry rights were renewed even after large sums remained unpaid. This, the plea argues, shows a complete disregard for the legal process and has allowed influential operators to keep benefiting despite owing money to the state.

The petitioner also told the court that illegal mining in the Billaua and Berja areas of Gwalior district has caused serious environmental damage. The area is known for black stone and crusher aggregate trade, and the petition says mining activity has left the land riddled with deep pits of 25 to 30 metres, or around 100 feet.

The petition alleges that huge quantities of valuable black stone were extracted and sold in the market, while the revenue that should have gone to the government treasury instead went to the mining mafia. Earlier departmental inspections reportedly found large-scale illegal excavation, but no effective action followed.

The state government’s additional advocate sought time to present the government’s stand, which the court accepted. The bench granted one week’s time, and the next hearing is scheduled for 6 July 2026.

The case has drawn attention because it raises questions not just about illegal mining, but also about enforcement failure, recovery of public dues and the alleged protection of powerful defaulters. The court’s observations suggest the matter may become a major test of the state’s accountability in the mining sector.