The Supreme Court today cancelled 49 leases in mines reporting maximum illegalities in Bellary, Tumkur and Chitradurga districts of Karnataka, but allowed resumption of activity in mines with lesser illegalities as recommended by a Central Empowered Committee (CEC).

CEC had categorised the mines in the area in three categories -- A, B and C. The mines in which there was least or no irregularities were categorised as 'A' and those with maximum illegalities were placed in category 'C'.

The apex court, while accepting the majority of the recommendations made by CEC since July 2011 on the mining issues in Karnataka, also said that illegal iron ore mining on the Andhra-Karnataka border would remain suspended till the demarcation of boundary between the two states is completed.

A bench of justices Aftab Alam, K S Radhakrishnan and Ranjan Gogoi passed the order on a plea by NGO Samaja Parivartana Samudaya which had alleged large-scale irregularities and illegalities were being committed by various private mining firms holding licences to mine in Bellary, Tumkur and Chitradurga districts as well as state-owned Mysore Mining Ltd (MML).

The illegalities referred to included illegal mining activities, allotment of huge quantities of iron ore at throw-away prices to private companies and an increase in rates at which iron ore was supplied to some other companies.

Earlier on September 3, 2012 the apex court had partially lifted its ban on mining operations in Karnataka, ordered more than a year ago, and gave a green signal for extraction of iron ores on 18 leases in category A mines, subject to certain conditions being fulfilled.

The bench had accepted the report of the CEC which had said 18 leases be allowed to carry on their business in the districts of Bellary, Tumkur and Chitradurga as they have not violated any rules.

Supreme Court on Thursday stalled Vedanta Group's bauxite mining project in Niyamgiri Hills of Odisha till gram sabhas of districts Rayagada and Kalahandi in the state give clearance to it.

The apex court directed the gram sabhas of the two districts to decide in three months the issues arising out of the mining project, including that of the tribals residing in the area.

A bench of justices Aftab Alam, K S Radhakrishnan and Ranjan Gogoi also directed the Ministry of Environment and Forests (MoEF) to take action in two months after a report from the gram sabhas is received.

The bench gave the directions on the petition moved by state-owned Orissa Mining Corporations (OMC) challenging MoEF's decision to cancel the environmental clearance granted to the Niyamgiri Bauxite Mining Project of Sterlite Industries Ltd, the Indian arm of UK-based Vedanta Group.

The ministry had refused the next stage forest clearance to OMC and Sterlite's mining project in Niyamgiri Hills area in Lanjigarh, Kalahandi and Rayagada districts, accepting the Forest Advisory Committee's (FAC) recommendation for withdrawal of the clearance.

During the proceedings, OMC and Sterlite Industries had claimed that no ecological damage has been caused due to the mining activities in Niyamgiri Hills.

This contention had been opposed by the MoEF and various tribal rights groups which had alleged that the project has violated environmental norms.

The ministry had submitted before the court that the forest dwellers cannot be evicted from proposed mining sites in Niyamgiri Hills of Odisha till the "community and individual" rights of residents are decided under the law.