JSW Steel: Odisha HC quashes ₹696 crore mineral demand

JSW Steel said the Odisha High Court has granted relief in two mineral-dispatch disputes concerning its Jajang iron ore block: a ₹696.32 crore demand stands quashed, while a separate ₹1,472.69 crore demand has been set aside and returned to the mining authority for a fresh decision.

The Economic Times reported that the company disclosed the outcomes in a regulatory filing on October 18. The judgments were pronounced on October 16, 2026, on separate petitions challenging demands issued by mining authorities in Joda, Odisha.

The two outcomes are materially different. The larger demand remains subject to reconsideration; the court’s decision to set it aside does not amount to a final cancellation of the underlying claim.

₹696.32 crore demand: company cites earlier ruling

The smaller demand concerned an assessed shortfall in mineral dispatch during the first year of the Mine Development and Production Agreement, from June 27, 2020, to June 26, 2021. The Joint Director of Mines, Joda, issued the demand in September 2021.

According to JSW Steel, the High Court disposed of this case in accordance with its April 20, 2026, judgment in another petition and related matters. The company said it understands the conclusions and directions in that ruling to mean that the September 6, 2021, demand letter and a corrigendum issued the next day stand quashed.

₹1,472.69 crore demand goes back for review

In the second case, the court set aside an August 21, 2025, demand letter issued by the Deputy Director of Mines, Joda. The authority must decide the matter afresh in light of the legal position laid down in the April 20 judgment, the company said.

This demand related to assessed dispatch shortfalls during the agreement’s fifth year, covering June 27, 2024, to June 26, 2025. It was raised under Rule 12-A of the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016.

Although the disputes were described as relating to FY21 and FY25, their stated assessment periods ran from June to June under the mining agreement, rather than matching April–March financial years. The demands concerned mineral-dispatch obligations, rather than a conventional tax assessment.

JSW Steel had sought the quashing of both demand letters among other reliefs. It said the interval between the judgments and its disclosure reflected the time needed to review the court’s decisions.