Auction of the Thakurani B iron ore mine will take longer as the incumbent lessee Sarda Mines Private Ltd (SMPL) has moved the Supreme Court in pursuit of its claim to another ten more years.
The apex court on 4 February 2022 ordered for “statusquo” to be maintained after the Odisha government moved to take possession of the 2,590.4 acres mine. SMPL, which provided much of its output to Jindal Steel and Power, is contesting the state government’s discussion to recognise its lease only until 13 August 2021. Its plea is that while signing a 20 year lease back in 2001, the state had promised to grant it another ten as per their original agreement in the late 80s recognised by past court orders.
While the state government says when the lease was signed, it was in favour of a company, and the individuals of the Sarda family which had mining rights in the past thereby waive off their claim to ten more years. The state advocate general added that the law did not allow an automatic extension or renewal de hors unless specifically provisioned for in the lease deed, which wasn’t the case here. The High Court of Orissa had agreed with the state last month, forcing SMPL to knock on the SC’s doors.
Following the 10 January 2022 HC order, the state had moved to take possession of the Thakurani B mine. It has since withdrawn this letter after SMPL wrote back pointing out that mineral concession rules granted it six months to clear its stock and equipment and in any case it intended challenging the HC’s order said those in the know.
The mine’s idle currently with SMPL accused of exceeding its permitted limits and facing a fine of more than INR 2045.51crores. The HC taking that claim into consideration had asked the state authorities to hear the petitioner, which they curiously failed before shooting off the notice, and pass a fresh reasoned order before 11 March 2022.. This hearing took place on 9 February 2022, say company sources.
~ Inputs by Meera Mohanty
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