The High Court of Orissa has asked miners contesting their minimum production shortfalls to pay in the interim a part of the claim without prejudice, until the next hearing.
Auctioned mines need to meet a minimum production target, failing which they must compensate the state government for the shortfall. Considering the high premiums these mines have committed, these shortfalls have translated into notices running into hundreds and thousands of crores.
The miners had moved the High Court pleading that the shortfall had to be based on what they didn’t mine or produce, rather than on what was not dispatched. Some have also claimed their operations were hindered by extraneous circumstances and state government decisions.
While hearing the matter, the High court has asked Tata Steel Mining to pay in the interim INR 200 crores without prejudice to the claim. The amount would be returned to it with simple interest of 5% per annum at the end and depending on the court’s final verdict. This is for shortfalls at its chrome mines. Tata Steel is believed to have sought more time to pay this amount.
JSW Steel similarly has to pay INR 35 crores (against a INR 693.32 crore notice) while Serajuddin was asked to pay INR 400 crores (against the INR 6028 crore notice).
Serajuddin, which faces a INR 6028 crore claim, informed the court on 27 September that it would not be making this deposit. The stay against recovery from the miner is thus vacated but it does not impede the running of the mine, said a lawyer familiar with the case.
Meanwhile as SteelMint has reported, AM/NS has deposited under protest and without prejudice, an amount of INR 35.29 crores which it believes is its shortfall. The company though had not challenged the MDPA claims in any court of law.
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