India, Sept. 15 -- The Supreme Court has allowed Karnataka to amalgamate mining blocks belonging to different categories, including Category A, B and C mines, along with virgin forest land, for auction, holding that creating such compact blocks is a matter of "operational rationalisation" that can be permitted as long as the environmental and other safeguards imposed by the court over years of scrutiny of mining in the state are not diluted.

A bench of Chief Justice of India Surya Kant and justices Joymalya Bagchi and V Mohana said the inclusion of virgin forest land in an amalgamated block would not amount to permission to mine it and made prior statutory clearance a non-negotiable requirement before any mining could begin there.

The o...