The High Court of Orissa quashed a ₹696.32 crore demand against JSW Steel regarding Jajang Iron Ore Block dispatch shortfalls, while setting aside a ₹1,472.69 crore demand for fresh assessment. The court disposed of both writ petitions on October 16, 2026, applying legal principles established in its earlier judgment dated April 20, 2026. The quashing removes immediate contingent liability, while the remand keeps the larger demand subject to further regulatory review based on prior legal precedents.
JSW Steel received a ₹696.32 crore demand letter on September 6, 2021, from Joda authorities under Rule 12-A of the Minerals Concession Rules, 2016, citing shortfall in dispatch from the Jajang block during its first year of operation (June 27, 2020 to June 26, 2021). The company challenged this via Writ Petition (Civil) No. 28232 of 2021. Additionally, a ₹1,472.69 crore demand letter was issued on August 21, 2025, by the Office of Deputy Director of Mines, Joda, for dispatch shortfall during the fifth year of the Mine Development and Production Agreement (June 27, 2024 to June 26, 2025). Both demands totaled over ₹2,169 crore and were related to shortfall in mineral dispatch from the Jajang Iron Ore Block.
JSW Steel shares closed the previous trading session 1.3% higher at ₹1,216.30 apiece, reflecting investor confidence in the court's decision. The stock has declined 4.7% in the past month but has gained 3.8% this year. The immediate quashing of the ₹696 crore liability removes a direct contingent risk, while the remand of the larger ₹1,472 crore demand implies continued regulatory scrutiny. The company disclosed these developments under Regulation 30(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, noting the delay in filing was due to time required to review the judgments.
