Despite Supreme Court ruling over mineral extraction from river beds Jammu and Kashmir is yet to implement a policy where in mineral extraction is to be regulated in such a way that water sources are protected along with the environment. The whole gamut of this business has been caught in the web of politics and the concerned enforcement agencies are keeping a silence over the loot rather catching the culprits. Recently the Apex Court by ordering lease-holders to pay compensation to the extent of 100 per cent of the price of the quantum of minerals they had illegally extracted has gone beyond a mere affirmation of the ‘polluter pays’ principle. It has also set a significant benchmark for stringent action against those who indulge in mining without environmental or forest clearance. The Supreme Court had stated that many states were not adhering to the recommendations of the Union Ministry of Environment and Forests made in the year 2010 or the guidelines issued by the Ministry of Mines before issuing auction notices despite being aware of the fact that effective framework of mining plan was imperative in order to take care of all environmental issues. However, the State Government is yet to implement the order of the Supreme Court as well as recommendations of the Union Ministry of Environment and Forests till date and reckless mining in various rivers across Jammu and Kashmir is going on. The condition on the surface is such gloomy that most of the rivers run dry ahead of monsoon and during the rain they fail to retain water because of the surface degradation. The regulatory agency, Mining Department hardly has any prosecution powers except impose penalty which is very low compared to the violation. There appears to be no effective policy or effective check on mining operations. In strong words, it has asked the Centre to revisit its National Mineral Policy, 2008, which seems to be only on paper and is not being enforced, perhaps due to the involvement of very powerful vested interests or a failure of nerve. It is clear that the country is already paying a heavy price for its failure to regulate mining operations in an effective manner in several parts of the country.