Institute of Legal and Management Studies

The Supreme Court on Wednesday pulled up the State of Odisha for its failure to recover compensation exceeding ₹2,700 crore from mining leaseholders involved in illegal mining of iron and manganese ore without obtaining prior environmental clearance.

A Bench comprising Justice Dipankar Datta and Justice AG Masih was hearing a plea concerning the non-recovery of dues that were imposed pursuant to the Supreme Court's 2017 judgment, which had directed the State to recover compensation from defaulting leaseholders operating in the districts of Keonjhar, Sundargarh and Mayurbhanj.

During the hearing, Advocate Prashant Bhushan, appearing for the petitioner, Common Cause, alleged that the State authorities appeared to be “in collusion” with the leaseholders, given the prolonged inaction. “There has been inordinate delay. The monies had to be paid by 31 December 2017, and this amount is without interest. With interest, it will be almost double,” he submitted.

In response, the Advocate General of Odisha denied any collusion and sought four weeks' time to meet with the Chief Secretary and other officials to ensure appropriate action is taken. “Kindly grant reasonable time; whatever legal steps are required under law, I will ensure that they are taken,” the AG assured the Court.

Expressing dissatisfaction, the Bench observed in its order that it was “not pleased with the manner in which the State of Odisha has been proceeding for recovery of the compensation.” The Court recorded the submission of the Advocate General that he would take personal interest in the matter and ensure concrete steps are taken against the defaulters.

The matter has been adjourned for eight weeks, with the Court directing the State to show progress in recovery efforts by the next date of hearing.

Case : COMMON CAUSE v. UNION OF INDIA | MA 18/2025 in W.P.(C) No. 114/2014