By Our Correspondent
NEW DELHI/BHUBANESWAR:A bench comprising Justice Dipankar Datta and Justice AG Masih of Supreme Court on Wednesday requested the Chief Justice of the Orissa High Court to constitute a dedicated bench to dispose of cases, where proceedings to recover dues from illegal mining, have been stayed. The Court said that the High Court should take an effort to dispose of these cases by March 3, 2026. If there is any difficulty in the final disposal of the cases, then the High Court should at least decide the State’s applications to vacate the interim stay.
As per estimates, the recovery of about Rs 2700 crores from illegal mines is pending. With interest , now its around Rs 6000 Crore.
The Apex Court was hearing a Miscellaneous Application concerning the non-recovery of dues from the illegal mining leaseholders pursuant to the Supreme Court’s 2017 judgment, which had directed the State to recover compensation from defaulting leaseholders operating in the districts of Keonjhar, Sundargarh and Mayurbhanj.
On September 17, the Court had asked the State of Orissa to file a status report with regard to the recovery process initiated pursuant to which the report was filed on October 29 that a recovery exceeding ₹2,700 crore is pending. Hearing this, the Court expressed “serious displeasure” at the mode and manner in which the State of Orissa has been proceeding for recovery of the dues from the defaulting lessees.
“It has been informed to us that at least 19 writ petitions are pending before the Orissa High Court where orders passed in recovery proceedings have been challenged and stay obtained. Since public revenue to a substantial extent is involved, we granted liberty to the State of Orissa to move an application before the Chief Justice of Orissa by 19 December, 2025, with the request to assign all such cases to a dedicated bench for final disposal within 31 March, 2026. If the bench is disabled from deciding the writ petitions finally by 31 March, at least the prayers made by State of Orissa for vacation, alteration or modification of such orders may be considered. List the miscellaneous applications in first week of April 2026 for reporting development. We also observe that in such certificate cases, where there is no order of stay operative or appropriate Court, the State of Orissa may proceed with recovery and file status report in the week commencing the first week of April.”
In its 2017 judgment, the Supreme Court held that several mining leaseholders in Odisha had extracted iron and manganese ore without obtaining necessary clearances under the Environment (Protection) Act, 1986, and the Forest (Conservation) Act, 1980. The Court ordered recovery of the full price of illegally mined minerals from the leaseholders, as mandated under Section 21(5) of the MMDR Act. The total notional value of the illegally mined ore, as noted by the Court in that judgment, was over ₹17,500 crore.
In January 2025, the Court took note of an affidavit filed by the Additional Secretary, Department of Steel and Mines, Government of Odisha, stating that as on January 20, 2025, the total outstanding dues stood at ₹2721.65 crore, with accrued interest amounting to ₹3506.68 crore. The State had then informed the Court that proceedings for recovery were pending before various forums, including actions under the Odisha Public Demands Recovery Act, 1962.
