In a major respite to steel giant Jindal Steel and Power Ltd (JSPL), the Chhattisgarh High Court has ordered to put on hold fresh auction of the iron mine in Dantewada’s Kamalpur village.
A division bench of Acting Chief Justice Prashant Kumar Mishra and Justice Rajani Dubey directed that no third party rights could be created on the mine in question and placed its auction on hold.
“On the said date, this court shall hear the petitioner’s prayer for interim relief. However, in the meanwhile, it is observed that the proceeding for leasing out the subject mining area under the subject Notice Inviting Tender (NIT) shall remain subject to the final outcome of the writ petition,” the bench said.
After being allotted the mine, the JSPL had made a heavy investment to execute the prospecting license since the company faced enormous challenges including the influence of Maoists in the region.
Earlier, the Chhattisgarh government announced the mine’s auction all over again by invoking the 2021 amendment to Mines and Minerals Development and Regulation Amendment Act (MMDRA), 2015.
Two clauses of the amended MMDRA -- sections 10A(2)(b) and 10A(2)(c) -- deal with the grant of prospecting license mining leases.