India's Supreme Court has empowered states to levy taxes and royalty on mining activities retrospectively from April 1, 2005, with payments staggered over 12 years starting from April 1, 2026. The nine-judge bench, led by Chief Justice D.Y. Chandrachud, clarified that no interest or penalties will be imposed on dues for the period before July 25, 2024. This ruling overturns the 1991 India Cement case decision, aligning with the 2004 Kesoram case, and is estimated to have a financial impact of around Rs 2 trillion. While the decision brings financial relief to mineral-rich states, it poses significant financial burdens on mining companies, potentially affecting investments and causing stock market declines in major mining firms. Industry experts warn that the retrospective application could lead to increased costs for end-users and possibly bankrupt some companies. The ruling has generated concerns about its potential economic impact and calls for legislative intervention to mitigate adverse effects.