Legal & Disputes
Orissa High Court Quashes ₹696 Crore Demand Against JSW Steel Over Jajang Iron Ore Block
By News Desk ·
Key takeaways
- The High Court of Orissa quashed a ₹696.32 crore demand against JSW Steel over dispatch shortfalls at the Jajang Iron Ore Block.
- A separate ₹1,472.69 crore demand was set aside and remitted to authorities for fresh assessment.
- Both writ petitions were disposed of by the court on October 16, 2026.
JSW Steel has secured relief from the High Court of Orissa, which quashed a ₹696.32 crore demand tied to dispatch shortfalls at the Jajang Iron Ore Block in Odisha and set aside a separate ₹1,472.69 crore demand, remitting it for fresh assessment. ScanX reported the October 16, 2026 orders, disclosed under Regulation 30(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
How the Jajang Block Demands Arose
The two disputes stem from separate writ petitions filed by JSW Steel challenging demands raised by state mining authorities for alleged shortfalls in mineral dispatch.
In September 2021, the Office of Joint Director of Mines, Joda, issued a demand letter for ₹696.32 crore under Rule 12-A of the Minerals Concession Rules, 2016, citing a shortfall in dispatch from the Jajang block during its first year of operation, from June 27, 2020 to June 26, 2021. JSW Steel challenged this through Writ Petition (Civil) No. 28232 of 2021. On October 16, 2026, the High Court disposed of the petition by applying legal principles established in an earlier judgment dated April 20, 2026, and the company confirmed that the demand letter and its subsequent corrigendum stand quashed.
A second dispute arose from a demand letter issued on August 21, 2025, by the Office of Deputy Director of Mines, Joda, seeking ₹1,472.69 crore for a dispatch shortfall during the fifth year of the Mine Development and Production Agreement, from June 27, 2024 to June 26, 2025. The company filed Writ Petition (Civil) No. 23792 of 2025. In its October 16, 2026 order, the High Court set aside this demand letter and remitted the matter to the concerned authority to decide afresh, strictly adhering to the legal position in the April 2026 judgment.
JSW Steel's Odisha Expansion Plans
JSW Steel is India's leading integrated steel manufacturer with 37.9 MTPA capacity, producing flat and long steel products for automotive, construction, infrastructure, consumer durables, and energy customers across India, the USA, and Italy, according to akta.pro company records.
The same records show JSW Steel commenced construction of a 13.2 MTPA greenfield integrated steel plant at Paradeep, Odisha, in May 2026, with investment of approximately ₹65,000 crore and potential expansion to 25 MTPA. In May 2026 it also formed a 50:50 joint venture with POSCO Holdings for a 6 MTPA greenfield steel plant in Dhenkanal, Odisha, targeting completion by 2031.
Earlier Legal and Financial Steps
On October 1, 2026, the Karnataka High Court rejected JSW Steel's challenge to ED attachment orders, ruling the petition was a gross abuse of process, and said the Supreme Court and Appellate Tribunal had refused to quash the attachment, with the PMLA Adjudicating Authority's order standing, Bar and Bench reported.
On October 7, 2026, JSW Steel fully repaid its $500 million 3.95% notes ahead of the April 5, 2027 maturity, removing a significant external liability from the balance sheet, ScanX reported.
What Comes Next for the Remanded Demand
The High Court remitted the ₹1,472.69 crore demand to the concerned authority to decide afresh, strictly adhering to the legal position in the April 2026 judgment.