Polity · 14 Aug 2026

MMDR Amendment Bill 2026 mineral taxation

Consider the following statements:

  1. Entry 50 of the State List empowers states to tax mineral rights, subject to any limitations imposed by Parliament by law relating to mineral development.
  2. The Mineral Area Development Authority v. SAIL (2024) ruling was delivered by a nine-judge Bench and overturned the 1989 India Cements precedent.
  3. The Mines and Minerals (Development and Regulation) Amendment Bill, 2026 amends the Constitution to remove states' power to tax mineral rights.
  4. The Mines and Minerals (Development and Regulation) Amendment Bill, 2026 voids unrecovered state dues on mineral rights that had accrued before the amendment takes effect.
AOnly one
BOnly two
COnly three
DAll four
This question is based on: Can Parliament Out-Legislate a Nine-Judge Bench? The MMDR Bill Says Yes
Take this in full test mode → Instructions for 14 Aug 2026
About this question

Why in news

The Lok Sabha passed the MMDR Amendment Bill, 2026 without debate amid Opposition protests, barring states from taxing mineral rights and reversing the practical fiscal effect of the Supreme Court's 2024 Mineral Area Development Authority v. SAIL ruling.

Why for UPSC

A four-statement "how many correct" format with one high-stakes trap - mistaking an ordinary Entry 54 legislation for a constitutional amendment - mirrors exactly the kind of precision UPSC rewards on federalism and legislative-competence questions.

Prelims summary

Entry 50 (State List) gives states a conditional power to tax mineral rights, subject to Parliament's Entry 54 (Union List) power. The MMDR Amendment Bill, 2026 is ordinary legislation exercising that condition - not a constitutional amendment - and it both bars future state mineral levies and voids pre-amendment unrecovered dues.

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