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SC Flays Odisha Govt For Delay In Recovering Rs 2700 Cr Compensation From Mining Leaseholders

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Home Legal

SC Flays Odisha Govt For Delay In Recovering Rs 2700 Cr Compensation From Mining Leaseholders

by OB Bureau
October 29, 2025
in Legal, Odisha
Reading Time: 1 min read
SC Flays Odisha Govt For Delay In Recovering Rs 2700 Cr Compensation From Mining Leaseholders
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New Delhi/Bhubaneswar: The Supreme Court on Wednesday pulled up the Odisha government for its failure to recover compensation to the tune of Rs 2,700 crore from mining leaseholders involved in illegal mining of iron and manganese ore without obtaining environmental clearance.

A Bench of Justice Dipankar Datta and Justice AG Masih was hearing a plea pertaining to the non-recovery of dues that were imposed pursuant to a Supreme Court verdict.

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Notably, the Apex Court in its judgement in 2017 had directed the State to recover compensation from defaulting leaseholders operating in Keonjhar, Sundargarh and Mayurbhanj districts.

During the hearing, Advocate Prashant Bhushan, appearing for the petitioner, Common Cause, alleged that the State authorities appeared to be “in collusion” with the leaseholders, given the prolonged inaction. “There has been inordinate delay. The monies had to be paid by 31 December 2017, and this amount is without interest. With interest, it will be almost double,” a report in LiveLaw quoted him as having submitted.

In response, the Advocate General of Odisha denied any collusion and sought four weeks’ time to meet with the Chief Secretary and other officials to ensure appropriate action is taken. “Kindly grant reasonable time; whatever legal steps are required under law, I will ensure that they are taken,” the AG assured the Court.

Expressing displeasure, the SC Bench observed in its order that it was “not pleased with the manner in which Odisha has been proceeding for recovery of the compensation.” The Court recorded the submission of the Advocate General that he would take personal interest in the matter and ensure concrete steps are taken against the defaulters.

The matter has been adjourned for eight weeks, with the Court directing the state to show progress in recovery efforts by the next date of hearing.

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