Kataka: In a relief for JSW Steel, the Orissa High Court has struck down a massive penalty while sending a second multi-crore claim back to regulatory authorities for reconsideration.
The rulings effectively stall combined mining shortfall claims exceeding ₹2,168 crore tied to the steelmaker’s Jajang iron ore block in Odisha’s mineral-rich Joda circle.
At the centre of the dispute are two separate demand notices issued under Rule 12-A of the Minerals Concession Rules, 2016, which penalizss miners when mineral dispatches fall below stipulated targets. Mining authorities in Joda had originally slapped JSW Steel with a ₹696.32 crore demand in September 2021, citing dispatch deficits during the first year (FY21) of its Mine Development and Production Agreement (MDPA). A second, even larger penalty of ₹1,472.69 crore was handed down in August 2025 by the Deputy Director of Mines for alleged shortfalls during the agreement’s fifth year (FY25).
Challenging both regulatory actions through individual writ petitions, JSW Steel argued against the validity of the dispatch assessment methods.
Delivering its verdict on October 16, the High Court ruled decisively in favour of the steel manufacturing giant on the FY21 claim, completely quashing the ₹696.32 crore demand letter and its subsequent corrigendum. The court disposed of the matter in alignment with landmark legal principles established in its prior April 20, 2026 judgment on related mining disputes.
Addressing the steeper ₹1,472.69 crore claim for FY25, the High Court set aside the demand notice and remitted the case back to the local mining office. Officials have been instructed to reassess the claim strictly in light of the legal position clarified in the court’s April ruling.
JSW Steel informed the stock exchanges of the developments on October 18, explaining that the delay in disclosure was necessary to carefully examine the full judgments, driving positive sentiment around the stock as markets evaluated the reduced liability risk.