The Supreme Court on Wednesday expressed “utter displeasure” at the Odisha government for its sluggish approach to recovering massive dues from defaulting mining leaseholders who had violated mining norms. The court directed the state to file a more comprehensive status report by December 1, warning that government revenue must not be evaded.
The case stems from the Supreme Court’s August 2017 judgment which had directed recovery of compensation under Section 21(5) of the Mines and Minerals (Development and Regulation) Act, 1957 from mining companies that extracted minerals without proper environmental or forest clearances, or beyond approved limits. The dues were to be deposited by December 31, 2017.
The proceedings are based on a 2014 petition highlighting rampant illegal mining in Odisha. Over the years, the top court has issued several directions for recovery of the dues, amounting to thousands of crores.
A bench of Justices Dipankar Datta and Augustine George Masih took strong exception to the Odisha government’s slow pace of recovery.
“We express utter displeasure at the mode and manner in which the state of Odisha has been proceeding for recovery of the dues from the defaulting lessees,” the bench said, making it clear that the state cannot allow evasion of government revenue.
Advocate Prashant Bhushan, appearing for the petitioner, argued that despite repeated directions, the state was “just dilly-dallying,” as reflected in its recent status report.
When questioned by the bench, the Advocate General of Odisha sought additional time, assuring the court that he would hold a meeting with the chief secretary and other officials to ensure necessary legal action. “Grant us a reasonable time. Whatever legal steps are required to be taken, I will ensure that they are taken,” he said.
Accepting the assurance, the Supreme Court granted time till December 1 for submission of a detailed, improved status report and listed the matter for December 3.
The bench noted the state’s affidavit claiming that “periodical follow-up is done” and “earnest effort is being made” to recover the dues. The affidavit also detailed ongoing proceedings, including those where recovery orders were set aside by the Odisha High Court.
During the hearing in November 2024, the apex court had taken note of the state’s affidavit dated February 7, 2024, stating that ₹2,745.77 crore (excluding interest) had been recovered. However, the court had observed that this figure was significantly lower than the total dues recoverable under the 2017 judgment.
The bench’s latest remarks signal its growing concern over the state’s failure to complete the recovery process even eight years after the landmark judgment.
“We express utter displeasure at the mode and manner in which the state of Odisha has been proceeding for recovery of the dues from the defaulting lessees.” — Supreme Court Bench of Justices Dipankar Datta and Augustine George Masih
