Orissa High Court
Case Details
Signature Not Verified Digitally Signed Signed by: BHABAGRAHI JHANKAR Reason: Authentication Location: ORISSA HIGH COURT, CUTTACK Date: 03-Dec-2025 17:58:11 IN THE HIGH COURT OF ORISSA AT CUTTACK W.P.(C) No. 29897 of 2025 (In the matter of a petition under Articles 226 and 227 of the Constitution of India, 1950). Jindal Steel Limited, New Delhi …. Petitioner (s) State of Odisha & Ors. …. Opp. Party(s) -versus- Advocates appeared in the case through Hybrid Mode: For Petitioner (s) For Opposite Party (s) : : Mr.Gopal Jain, Sr. Adv. Along with Mr. S.S. Mohanty, Adv. Mr. Debasish Nayak, AGA Mr. Lalitendu Mishra, Adv. (for intervenor) CORAM: DR. JUSTICE SANJEEB K PANIGRAHI DATE OF HEARING:-10.11.2025 DATE OF JUDGMENT:-29.11.2025 Dr. Sanjeeb K Panigrahi, J. 1. In the present Writ Petition, the Petitioner assails the legality of the impugned order dated 19.10.2025 passed by the Opposite Party No.3, the Divisional Forest Officer, Keonjhar, whereby the working permission earlier granted in favour of the Petitioner in respect of 51.99 hectares of diverted forest land forming an integral part of the Roida-I Iron and Manganese Mine has been revoked. The Petitioner contends that the said revocation is arbitrary, unsustainable in law, and violative of the mandate governing forest-diverted mining Page 1 of 45 Signature Not Verified Digitally Signed Signed by: BHABAGRAHI JHANKAR Reason: Authentication Location: ORISSA HIGH COURT, CUTTACK Date: 03-Dec-2025 17:58:11 operations. Consequently, the Petitioner prays for issuance of an appropriate writ to quash the aforesaid order and to pass appropriate order to the Opposite Parties to restore the working permission and to permit the Petitioner to continue with mining operations, including transportation and dispatch of minerals, over the said 51.99 hectares of the subject mine. II. FACTUAL MATRIX OF THE CASE: 2. The brief facts of the case are as follows: (i) M/s Khatau Narbheram and Co. was originally granted a Mining lease for Roida - I block over 104.68 ha of Siddhamatha Reserve Forest, situated in village Roida, Barbil Tahasil, District Keonjhar, Odisha on 21.05.1963 for a period of 30 years with effect from 23.1.1953 to 22.1.1983. Thereafter, the renewal of mining lease was granted for 20 years from 23.1.1983 to 22.1.2003. Further, on 31.10.1996, the mining lease was transferred to Mideast Integrated Steels Limited (’MISL’) for a period up to 22.1.2003. Subsequently, the said Mining Lease was extended up to 31.3.2020 through a supplementary mining lease deed executed on 13.7.2015. (ii) On 4.1.2006, Ministry of Environment Forest Clearance and Climate Change, New Delhi (‘MoEF’) granted in principle approval of Forest clearance over 51.990 ha including 23.393 ha of pre -1980 broken up forest area and 28.597 ha of fresh forest land and excluding safety zone of 8.581 ha. Page 2 of 45 Signature Not Verified Digitally Signed Signed by: BHABAGRAHI JHANKAR Reason: Authentication Location: ORISSA HIGH COURT, CUTTACK Date: 03-Dec-2025 17:58:11 (iii) Thereafter, on 19.2.2008, MoEF granted final approval of Forest clearance over the abovementioned 51.99 ha of forest land inside the Siddhamatha Reserve Forest area. On 23.5.2011, DFO, Keonjhar stopped MISL from transporting mineral through Siddhamatha Reserve Forest, from the western boundary of the Mining Lease connecting to NH520 (earlier NH 215) which was outside the mining lease area, for want of Forest Clearance. (iv) MISL filed W.P.(C) No.23722 of 2011 before this Court challenging the letter dated 23.5.2011 of the DFO, Keonjhar wherein this Court on 29.9.2011 passed an interim order permitting the MISL to seek permission from DFO, Keonjhar (Opposite Party No.2) to transport raw materials through Siddhamatha Reserve Forest which leads to NH 215 without affecting diversion of forest area, which was allowed by DFO, Keonjhar on monthly basis. This Court dismissed W.P.(C)No.23722 of 2011 filed by MISL on 5.2.2019, for want of prosecution, without deciding the matter on merits. (v) Meanwhile, on 13.9.2017 the MoEF granted in principle approval of forest clearance for 44.109 ha out of 104.68 forest area. It may be noted that MoEF had already granted forest clearance for 51.99 ha of forestland on 19.02.2008 and for 8.581 ha of forest land 1.4.2015 on payment of NPV. (vi) The Hon’ble Supreme Court on 15.1.2020, while disposing of MISL’s application vide I.A. NO. 30915 of2019 (in W.P.C. No.114/2014), permitted the MISL to sell the previously mined Page 3 of 45 Signature Not Verified Digitally Signed Signed by: BHABAGRAHI JHANKAR Reason: Authentication Location: ORISSA HIGH COURT, CUTTACK Date: 03-Dec-2025 17:58:11 ore lying at the subject mine site, proceeds of which were to be utilised towards compensation to be paid by MISL under Section 21(5) of MMDR Act, pursuant to the judgement dated 2.8.2017. (vii) Even after the disposal of W.P.(C) No.23722 of 2011 filed by the MISL and pursuant to the Supreme Court’s order dated 15.01.2020 passed in I.A. No.30915 of 2019 arising out of W.P.(C) No.114 of 2014 permitting the MISL to transport balance stock of minerals lying in the subject mine, the DFO, Kenosha on 18.12.2020 permitted such restricted transportation of stock iron ore from the subject mine to NH-215 through Siddhamatha Reserve Forest under the following conditions: (a) The existing road should not be widened during transportation of minerals. (b) The existing flora & fauna should not be damaged during transportation of minerals in the said road. (c) The vehicles shall not be parked in the said road passing through the Reserved Forest. (d) The road should be properly demarcated in the field in consultation with local forest officer before commencement of transportation, and such authenticated map signed by all should be submitted before commencement of transportation. Page 4 of 45
Legal Reasoning
Signature Not Verified Digitally Signed Signed by: BHABAGRAHI JHANKAR Reason: Authentication Location: ORISSA HIGH COURT, CUTTACK Date: 03-Dec-2025 17:58:11 (e) Proper security guard should be deployed so as to check violation of point 1,2,3 listed above. (viii) Thereafter, on 7.3.2025, State of Odisha issued a Notice Inviting Tender for auction of eight mineral blocks for grant of mining leases for (a) four iron ore and manganese blocks with expired mining leases i.e, Roida-I mine, Koira mine, Jalahuri mine and Putulipani mine and four green field blocks i.e. Jhumka- Pathiriposhi West mine, Orahuri mine, Roida-D mine, and Bhanjikusum mine. (ix) On 21.3.2025, the Petitioner submitted Pre-bid queries regarding approach road to Roida -I block from National Highway as follows: -I block "Approach Road from to Roida NationalHighway is outside the block area and appears tobe falling in Forest area. No document indicating forest clearance for approach road in Paid Document provided. Will the new lessee be allowedto use this approach road post auction for dispatchin order to comply with the MDPA requirement. Clarity on the same is essential in order to dispatchore and meet the MDPA requirements. " (x) Accordingly, on 2.4.2025, Pre-bid meeting was held which was chaired by the Additional Chief Secretary, Steel &Mines Department, Government of Odisha wherein the Petitioner once again raised the issue regarding grant of Forest Clearance for the connecting road between Roida I block and NH 215. Page 5 of 45 Signature Not Verified Digitally Signed Signed by: BHABAGRAHI JHANKAR Reason: Authentication Location: ORISSA HIGH COURT, CUTTACK Date: 03-Dec-2025 17:58:11 (xi) However, the State Government on 7.4.2025 responded that transportation will be in accordance with the provisions of the applicable law, the bidder is required to adhere to all relevant legal requirements. Furthermore, it was advised that all the bidders were to conduct its own due diligence qua the mines. (xii) In view thereof, the Petitioner on 17.4.2025 submitted a letter to the Director of Mines & Geology, Odisha with copy to Additional Chief Secretary, Steel & Mines Department, Odisha requesting clarification on the status of forest clearance for the only existing access road inside Siddhamatha Reserve Forest from NH 520 (erstwhile NH 215) to Roida-I mine under Barbil Tahsil, Keonjhar District. Further, in the said letter the Petitioner specifically requested that in the event no forest clearance existed, then as an interim measure, i) transportation of minerals may be allowed till such time Forest Clearance for the access road was approved, ii) the MDPA terms may be modified to the extent that the dispatch obligations would commence from the date of grant of Forest Clearance over the access road, and iii) the alternative, to coordinate with the adjacent Roida -11 block to provide temporary Right of Way for mineral evacuation till such time Forest Clearance for the access road is granted by MoEF. It appears that there has been no response to the said letter till date. (xiii) Pursuant to the Petitioner being declared as a preferred bidder, on 18.6.2025, the Petitioner deposited the 1st instalment of INR Page 6 of 45 Signature Not Verified Digitally Signed Signed by: BHABAGRAHI JHANKAR Reason: Authentication Location: ORISSA HIGH COURT, CUTTACK Date: 03-Dec-2025 17:58:11 51,14,34,054/- to the State Government. It is important to note that on 3.7.2025, the Petitioner deposited INR 51,14,34,054/- towards 2nd instalment. Further, in terms of Rule 12 of Mineral (Auction) Rule, 2015, the Petitioner also furnished performance security of INR 255,71,70,267. (xiv) In view thereof, the Department of Steel & Mines, Odisha issued Letter of Intent and Vesting Order on 2.7.2025 and the Petitioner was declared as a successful bidder of the subject mine on 14.7.2025. Consequently, on 15.7.2025, the Petitioner and the Collector, Keonjhar executed a Mine Development and Production Agreement (‘MDPA’). Further, it is important to mention that through an email dated 15.7.2025, the Petitioner requested the State Government to issue grant order for mining lease for the subject mine at the earliest so as to enable the Petitioner to proceed with the execution of mining lease within the stipulated time period, in accordance with the applicable rules. The Petitioner also deposited the 3rd instalment of INR l53,43,02,159/-. (xv) Thereafter, on 16.7.2025, the Department of Steel & Mines, Odisha issued grant order for mining lease in favour of the Petitioner. Further, based on the demand raised by the Sub- registrar, Keonjhar, the Petitioner paid stamp duty of INR 142,05,60,784/- and registration charges of INR 56,82,24,314/-. (xvi) Subsequently, a Mining lease deed of the subject mine was executed in favour the Petitioner on 16.7.2025. On 19.7.2025, the Page 7 of 45 Signature Not Verified Digitally Signed Signed by: BHABAGRAHI JHANKAR Reason: Authentication Location: ORISSA HIGH COURT, CUTTACK Date: 03-Dec-2025 17:58:11 Petitioner informed the DFO, Keonjhar that the Petitioner will commence mining operation over an area of 51.99 Ha on 25.7.2025. Further, on 21.7.2025, the Petitioner requested grant of working permission in the diverted area from DFO, Keonjhar. (xvii) It may be noted that on 22.7.2025, the Petitioner changed its name from Jindal Steel and Power Limited to Jindal Steel Limited. (xviii) On 30.7.2025, DFO Keonjhar granted working permission over an area of 51.99 Ha of already diverted forest area. Further, on 7.8.2025 Director of Mines, Bhubaneswar also granted approval to the weigh bridge of the Petitioner located within the subject mine for functioning of e-permit and e-pass system. Thereafter, the State Government on 8.8.2025 granted transit permit for despatch of excavated materials from the subject mine to the Petitioner’s plant. (xix) In the meanwhile, as directed by the DFO vide the permission letter dated 30.7.2025, the Petitioner submitted forest diversion proposal over an area of 0.928 Ha adjoining to the Western Boundary Line of the M.L. of the subject mine for road connectivity in Siddhamath Reserve Forest, on the online portal on 5.8.2025. The same was intimated to DFO, Keonjhar on the self same date as well. It may be noted that on 11.8.2025, DFO, Keonjhar issued a letter raising queries regarding the aforesaid proposal dated 5.8.2025. The Petitioner on 5.9.2025 informed the DFO, Keonjhar that all compliances have been done by the Page 8 of 45 Signature Not Verified Digitally Signed Signed by: BHABAGRAHI JHANKAR Reason: Authentication Location: ORISSA HIGH COURT, CUTTACK Date: 03-Dec-2025 17:58:11 Petitioner with respect to forest diversion and to accept the proposal for further necessary processing at the earliest. (xx) However, on 25.9.2025, the Forest Range Officer, Barbil Range issued show cause notice to Petitioner for use of alleged illegal road inside Siddhamatha Reserved Forest. Further, the notice directed the Petitioner to submit its response within 3 days from the date of receipt. The Petitioner requested an extension of time to submit its response to the show cause notice on 04.10.2025. (xxi) On 4.10.2025, Site Inspection was conducted by the office of DFO, pursuance to the submission of compliances and clarifications to the queries of DFO in relation to the Forest Diversion proposal submitted by the Petitioner for the existing forest road connecting the subject mine to the national highway. (xxii) On 17.10.2025 the Petitioner responded to the show cause notice dated 25.9.2025, inter alia, stating that: (a) The right to use the existing forest road through Siddhamatha Reserved Forest was enjoyed by the previous lessee. (b) This Court had permitted the previous lessee to use the said road and even after the disposal of WP(C) No. 23722 of 2011, DFO Keonjhar by its letter dated 18.12.2020 had allowed the previous lessee to transport the already mined iron ore through the same forest road recognizing the absence of any alternate access /road. Page 9 of 45 Signature Not Verified Digitally Signed Signed by: BHABAGRAHI JHANKAR Reason: Authentication Location: ORISSA HIGH COURT, CUTTACK Date: 03-Dec-2025 17:58:11 (c) OMC is presently using the same route for dispatch of iron ore mined by the previous lessee which is lying at the subject mine site. (d) Petitioner being the new lessee may be permitted to use the existing road until diversion proposal submitted by Petitioner is approved by MoEF. (e) Such permission is essential to enable the Petitioner to meet its binding contractual obligations under the MDPA and statutory obligations under the MCR 2016 which mandate quarterly production and dispatch of iron ore from the date of execution of mining lease. (f) Absence of any way of transportation of iron ore from the subject mine would result in substantial losses of INR 393 crores (approx.) per quarter to the state exchequer. (xxiii)However, it is alleged herein that the Opposite Party No.2 instead of processing the diversion proposal for .928 ha land in due time, on 19.10.2025 in an arbitrary, premediated and mala fide manner and without considering, and or addressing the detailed response dated 17.10.2025 submitted by the Petitioner, issued the impugned letter thereby revoking its working permission granted on 30.7.2025 over 51.99 Ha of forest land within the mining lease in Siddhamatha Reserved Forest, thus forcing the Petitioner to abruptly stop mining operations, which is outside the legal powers of the Opposite Party No.2. The Page 10 of 45 Signature Not Verified Digitally Signed Signed by: BHABAGRAHI JHANKAR Reason: Authentication Location: ORISSA HIGH COURT, CUTTACK Date: 03-Dec-2025 17:58:11 reason cited was the unauthorized use of Reserved Forest land within Siddhamath RF for transportation of minerals. (xxiv) In view of the impugned order dated 19.10.2025, the Petitioner issued a notice of event of Force Majeure to the Opposite Party No.5 as the Petitioner has been prohibited from undertaking mining and dispatch operations at the subject mine. (xxv) The Petitioner being thus aggrieved has approached this Court by way of this Writ Petition. III. SUBMISSIONS ON BEHALF OF THE PETITIONER:
Legal Reasoning
3. Mr. Jain, Learned Senior Counsel for the Petitioner earnestly made the following submissions in support of his contentions: (i) MISL had been using the approach road for 0.928 ha for transportation of minerals from the subject mine to NH-215 (now NH-520). MISL had approached this Court seeking permission to transport raw material on the approach road leading to NH-215 (now NH-520). This Court on 29.9.2011 in W.P.(C) No.23722 of 2011 passed an interim order permitting the MISL to seek permission from the DFO for transportation of raw materials through the approach road without affecting diversion of forest area and directed the DFO to pass necessary orders in that regard Transportation of minerals by MISL from Roida - I mine through the approach road was allowed by the DFO on a monthly basis. This Court’s order dated 29.9.2011 was extended till 5.2.2019. In fact, in Para 3 of the working Page 11 of 45 Signature Not Verified Digitally Signed Signed by: BHABAGRAHI JHANKAR Reason: Authentication Location: ORISSA HIGH COURT, CUTTACK Date: 03-Dec-2025 17:58:11 permission dated 30.7.2025 the DFO recognised the existence of the approach road connecting the mine to the national highway. Therefore, the DFO acknowledges that this Court has previously allowed temporary usage of the road for transportation of ores by the MISL pending diversion proposal. Further, by order dated 15.1.2020, the Supreme Court, while disposing of MISL’s I.A. No.30915 of 2019 arising out of W.P(C) No.114 of 2014, permitted the MISL to sell the previously mined ore lying at the subject mine site. The order records CEC’s recommendation regarding the modalities of sale to be conducted by OMC under the supervision of a committee, including representatives of the DFO. Accordingly, the approach road continued to be used by OMC under the knowledge and supervision of the DFO. In furtherance of the aforesaid order of the Supreme Court, the DFO, by its letter dated 18.12.2020 permitted the MISL to transport stocked iron ore from the subject mine to NH-215
Decision
(now NH-520) through the approach road. In view of the above, the DFO is now estopped from terming the approach road as ’illegal’, having itself permitted and supervised its usage on multiple occasions under judicial and administrative directions. (ii) It is also contended that the impugned letter dated 19.10.2025, does not provide any reasons for non-consideration of Jindal Steel’s reply and the DFO summarily rejected the reply by merely terming it as ‘unsatisfactory’. The failure of the DFO to assign reasons in the impugned letter, thereby passing a non- Page 12 of 45 Signature Not Verified Digitally Signed Signed by: BHABAGRAHI JHANKAR Reason: Authentication Location: ORISSA HIGH COURT, CUTTACK Date: 03-Dec-2025 17:58:11 speaking order, is contrary to the settled principles of natural justice and is non-est in law. In this regard, reliance is being placed on the judgments of the Supreme Court i.e. Oryx Fisheries Pvt. Ltd v. Union of India1, CCT v. Shukla & Bros.2, and Victoria Memorial Hall v. Howrah Ganatantrik Nagrik Samity3. (iii) Further, the show cause notice dated 25.9.2025 issued by FRO is wholly misconceived and without jurisdiction. Section 27 of Orrisa Forest Act, 1972 inter alia penalizes specific acts such as i) clearing of breaking up of forest land for cultivation or any purpose other than permitted use, ii) setting fire to a reserved forest, iii) felling or removing of trees or timber, iv) quarrying or removing any forest produce from a reserved forest without authority, and v) trespass, none of which have been established in the facts of the present case. In the show cause notice dated 25.9.2025 none of these ingredients are alleged much less established in the present case. Jindal Steel has not undertaken any felling and/or removal of forest produces or damage to trees. (iv) The alleged road referred to in the notice is an existing road which was in continuous use by the prior lessee MISL and OMC spanning over a decade and causes no disturbance to the standing vegetation of forest cover.