On the basis of recent direction of the Supreme Court, more than Rs 1,850 crore may come to Odisha State treasury. After hearing two interlocutory applications, a three-judge Bench of the Supreme Court headed by Chief Justice SA Bobde has passed such order.
Notably, an organisation namely Common Cause had knocked the door of justice in the year 2014 to curb illegal mining in the country. In this case Sarda Mines Pvt. Ltd (SMPL) which was granted lease of Thakurani Block-B iron ore mines in Keonjhar district approached the apex court seeking appropriate direction for resumption of its mining operation which was stopped since March, 2014.
Earlier as per the direction of the apex court, the Central Environment Committee (CEC) had inquired into the matter and submitted its report in 2019 indicating 135,34,703 tons of excess/illegal mining of iron ore by SMPL in violation of environmental clearance granted by the Union Environment and Forest Ministry.
Accordingly the CEC in its report stated that the SMPL is liable to pay Rs 933,60,79,689 in terms of judgment of the apex court. Thereafter, another committee in its report noted that there was no violation of legal provision with respect to mining by SMPL.
The SMPL argued before the SC that the company had suffered irreparable injury because of closer of the mine for more than five and a half years. Therefore, the company prayed the court to allow them to resume mining operations on certain conditions.
After hearing of the matter at length, the SC granted one month time to SMPL to deposit the dues as assessed by CEC on May 8 last.
Further the court directed SMPL to file an undertaking to comply with all the rules, regulations and other mandatory provisions for carrying out mining operations.
Another company namely Mideast through another interim application prayed the SC to permit them to sell 23,51,027.83 tons of iron ore which had been stacked at the dispatched site within the lease hold area and to permit them to deposit the consideration money received from the buyers to the State of Odisha towards demand notice.
Mideast was granted licence for setting up a pig iron and steel manufacturing plant near Duburi. The company was also granted mining lease over 104.68 hectares of Roida-1 iron ore mine near Barbil in Keonjhar district which is valid till 31.03.2020.
Notwithstanding the statutory embargo the Mideast extracted mineral over and above the permissible limit. As the company was found liable to compensate for the illegal extraction, a demand notice for payment of Rs 924,75,24,283 to be paid by 31.12.2017 was served upon. The mining operation was stopped from January 1, 2018 by which date extracted mineral of more than 23.51 lakh ton was stacked in the mining area.
The company approached the court to permit them to sell their stacked iron ore under supervision of State authorities and to deposit the sell proceeds towards outstanding dues. The court in its order allowed the Mideast to sell the iron ore already mined and stacked by it before January 1, 2018 under supervision of an authority to be appointed by the Odisha Government.
The court has categorically held that the sell proceeds in this regard is to be deposited with the Special Purpose Vehicle (OMBADC) towards State arrears. The State Government is also directed to appoint supervisory authority within two weeks and the sell process shall preferably be completed within two months thereafter.