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The Supreme Court has rapped Odisha government for partially complying with its order of recommending an iron ore lease for Bhushan Power and Steel Ltd (BPSL) and said if the order is not implemented fully within a month, contempt proceedings will be initiated
"We hold that the respondents (Odisha government) are in contempt of orders dated March 14, 2012 passed by this court in not complying with the directions in respect of Koira area. xxx In case the recommendation is sent within one month from the date of receipt of this order, we propose not to take any further action," the top court said while pronouncing its verdict earlier this week. .
In March 2012, the court had directed Odisha government to recommend an iron ore mines lease with around 200 million tonne deposit to feed the steel unit of BPSL for a period of 50 years as per its commitment mentioned in the Memorandum of Understanding (MoU).
The state government had recommended a mines lease with only 96 million tonne deposit in December 2012 in Thakurani mines of Keonjhar area, citing that additional lease area claimed by BPSL ni Koira were disputed areas and overlapped with lease claim of other companies such as Tata Steel and Larsen and Toubro (L&T).
In February 2013, BPSL dragged the state government to the apex court for partially complying to SC order and demanded contempt proceedings should be initiated against state steel and mines secretary if recommendation for an additional lease containing 128 million tonne iron deposit is not made soon.
The court agreed to the views of BPSL and said it was the duty of state government of to obey the top court order irrespective of the complexities involved .
"We are giving one final opportunity to them (Odisha government) to purge the contempt by transmitting requisite recommendations to the Central government. It would be for the Central government to consider the said the recommendations. xxxx In case the respondents do not purge in the manner mentioned above, it would be open to the petitioners to point out the same to this court by moving appropriate application and in the event the contemners shall be proceeded against," said the verdict by two-judge bench of Supreme Court.
After the state government's recommendation for an iron ore mines lease in favour of BPSL, three companies--Jindal Steel and Power Ltd (JSPL), Mahaveer Ferro Alloys and another Bhushan group company Bhushan Steel Ltd (BSL) who have set up steel units in Odisha had moved the Supreme Court to pass judgement in line with BPSL case, citing MoU commitment of state government. The top court however, rejected their pleas while passing judgment in the contempt case.
"The three petitioners pray that the same directions as given in favour of BPSL be passed in their cases as well. We are constrained to hold that on the basis of such an argument , they cannot approach this court directly by filing writ petitions," the court judgement said while disposing off the three petitions.
