Odisha HC quashes ₹696 cr demand, sets aside ₹1,473 cr notice to JSW Steel

Odisha HC quashes ₹696 cr demand, sets aside ₹1,473 cr notice to JSW Steel

The Orissa High Court has quashed a penalty of ₹696 crore imposed by the mining authorities on JSW Steel in Joda, Odisha, the company said on Sunday. The court also set aside a separate demand of ₹1,473 crore against the company and directed the authorities to reconsider the matter, CNBC TV18 reported.

JSW Steel had filed separate petitions challenging the order issued by Joda mining authorities, the company said in a regulatory filing.

Why was a demand of ₹696 crore raised against JSW Steel?

JSW Steel said it had received a letter on September 6, 2021, from the authorities raising a demand of ₹696.32 crore after the assessment of shortfall in dispatch of minerals from its Jajang Iron Ore Block.

The demand dates to the first year of its Mine Development and Production Agreement, which ran from June 27, 2020, to June 26, 2021, the report said.

The company’s writ petition before the High Court seeking to quash the demand resulted in the matter being disposed of on October 16, 2026, in line with the court’s earlier judgment dated April 20, 2026.

₹1,473 crore demand for fresh review

JSW Steel also received a relief involving another demand notice seeking ₹1,472.69 crore, which was raised by the Joda authorities on August 21, 2025.

The penalty related to a shortfall in mineral dispatches from the same Iron Ore Block during the fifth year of the Mine Development and Production Agreement, from June 27, 2024, to June 26, 2025.

The court set aside the demand letter, issued by the Deputy Director of Mines, Joda, sending the matter back to the concerned authorities for a review. It directed authorities to reconsider the case in light of the legal position explained in the court's judgment issued on April 20 this year.

According to The Economic Times, the authorities raised the demand under Rule 12-A of the Minerals (Other than Atomic and Hydrocarbons Energy Minerals) Concession Rules, 2016.