There is no relief for Jindal Steel and Power Ltd (JSPL) in the Sarda Mines case. Supreme Court (SC) has refused sale or transport of iron ore claimed by JSPL.

So, the worry as far as JSPL is concerned on account of Rs 2,000 crore of iron ore from the Sarda Mines in Orissa continues. In hope of some relief, they had pleaded before the apex court that the iron ore belonged to them and that they should be allowed to consume it and transport it from the current location, which is Sarda Mines.

However, this contention of JSPL was at odds with that of the banks. The banks clarified their position. They believe that they have a statutory charge over the same iron ore and that it does not belong to JSPL but belongs to the banks.

The banks on their part contended that they themselves should be allowed to sell this iron ore and the money realised should go in an escrow account.

Meanwhile, Orissa government has a completely different aspect. It believes that on account of forest clearance and environment clearance violation, they have levied a penalty which is to the tune of about Rs 933 crore and they think they should recover that first, only post that they would allow this iron ore to be sold or to be transported.

So, there are three competing contentions and on account of that the apex court has clarified that they refuse to pass an interim order and that a detailed hearing needs to take place. The detailed hearing is scheduled to take place on January 17.

So, the takeaway as far as JSPL is concerned is that the relief they were hoping for has not come. They have not been allowed to transport or use the iron ore in question, which is about 12 million tonne costing about Rs 2,000 crore.

First Published:Dec 3, 2019 12:59 PM IST