Supreme Court Asks Orissa High Court To Decide Cases Which Stayed Recovery Of Illegal Mining Dues By March 31, 2026
The Supreme Court today(December 10) requested the Chief Justice of the Orissa High Court to constitute a dedicated bench to dispose of cases, where proceedings to recover dues from illegal mining, have been stayed. The Court said that the High Court should take an effort to dispose of these cases by March 3, 2026. If there is any difficulty in the final disposal of the cases, then the High Court should at least decide the State's applications to vacate the interim stay.
As per estimates, the recovery of about Rs 2700 crores from illegal mines is pending.
A bench comprising Justice Dipankar Datta and Justice AG Masih was hearing a Miscellaneous Application concerning the non-recovery of dues from the illegal mining leaseholders 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.
On September 17, the Court had asked the State of Orissa to file a status report with regard to the recovery process initiated pursuant to which the report was filed on October 29 that a recovery exceeding ₹2,700 crore is pending. Hearing this, the Court expressed "serious displeasure" at the mode and manner in which the State of Orissa has been proceeding for recovery of the dues from the defaulting lessees.
Today at the outset, Advocate Pranav Sachdeva submitted that there are two sets of cases before the High Court. In the first category, the High Court has granted an interim stay on the recovery. He said that these cases need to be disposed of without further adjournments. As for the other, these are those cases where the High Court has set aside orders of recovery, and the State of Orissa needs to challenge them by filing special leave petitions or intra-appeal before the division bench of the High Court.
"The situation is, 2700 crores are pending. That is the same figure which is without interest. With interest, it crosses 6000 crores. That is the same figure your lordship had noted in the February order and in March, your lordship had said to file application for vacation of stay or SLPs where orders are stayed by the High Court. Those matters are also listed and interim orders are being continued. For the last two years, this Court has passed 10 orders. The only positive development is the acknowledgement. Now, in the new affidavit they say there is serious problem, we called the Collectors and certificate cases have been stuck and being adjourned for the last 7 years and Collectors were asked to expedite. That acknowledgement is the progress but as far as recovery is concerned, there are no..."
Sachdeva said that despite orders of the Supreme Court fixing the computation and many having paid seven years back, the High Court continues to stay the recovery proceedings.
Respondent for the State of Orissa said that 19 certificate cases are pending, and it is taking time because in many cases, the litigants have died and the authorities have to approach their legal representatives.
"What happens is, there are LRs in these matters, and a lot of people have died. We get the LRs impleaded and we issue them notices for the certificate cases. But they challenge the notices in the High Court, and pending the case, the High Court issues the orders. So the difficulties is, they come and say that the properties is not ours because we are going after attachment of these properties or the estate," she averred.
After hearing the parties, Justice Datta said that the Court will pass orders for the matters coming up in January before the High Court so that it can be disposed of.
"It has been informed to us that at least 19 writ petitions are pending before the Orissa High Court where orders passed in recovery proceedings have been challenged and stay obtained. Since public revenue to a substantial extent is involved, we granted liberty to the State of Orissa to move an application before the Chief Justice of Orissa by 19 December, 2025, with the request to assign all such cases to a dedicated bench for final disposal within 31 March, 2026. If the bench is disabled from deciding the writ petitions finally by 31 March, at least the prayers made by State of Orissa for vacation, alteration or modification of such orders may be considered. List the miscellaneous applications in first week of April 2026 for reporting development.
We also observe that in such certificate cases, where there is no order of stay operative or appropriate Court, the State of Orissa may proceed with recovery and file status report in the week commencing the first week of April."
Background
In its 2017 judgment, the Supreme Court held that several mining leaseholders in Odisha had extracted iron and manganese ore without obtaining necessary clearances under the Environment (Protection) Act, 1986, and the Forest (Conservation) Act, 1980. The Court ordered recovery of the full price of illegally mined minerals from the leaseholders, as mandated under Section 21(5) of the MMDR Act. The total notional value of the illegally mined ore, as noted by the Court in that judgment, was over ₹17,500 crore.
According to that affidavit, compensation had been recovered from three lessees, while recovery was underway in four cases pursuant to Supreme Court orders allowing sale of minerals. In five cases, recovery was held up due to litigation, and in fourteen cases, attachment proceedings were in process under the OPDR Act.
Case Details: COMMON CAUSE Vs UNION OF INDIA|MA 18/2025 in W.P.(C) No. 114/2014