JSW Steel , one of India's leading steel manufacturers, has received a significant reprieve in a case involving alleged violations in iron ore mining operations in Odisha. The revisionary authority has set aside a Rs 702-crore demand raised against the company, offering temporary relief to the steel giant.

Demand Notice Set Aside

The revisionary authority has overturned the substantial demand of Rs 702.00 crore that was initially raised by the Deputy Director of Mines against JSW Steel. This demand was related to alleged irregularities in the company's iron ore mining activities at Narayanposhi, Jajang, Nuagaon, and Gonua mines in Odisha.

Allegations and Appeal

The original claim against JSW Steel cited multiple violations, including:

1. Alleged drop in grade of production
2. Violation of the mining plan
3. Use of higher mesh size for screening

In response to these allegations, JSW Steel had filed an appeal before the District Mining Officer, who also serves as the Revisionary Authority.

Case Remanded for Fresh Consideration

While the demand has been set aside, the matter is far from resolved. The revisionary authority has remanded the case back to the Odisha government for fresh consideration. Importantly, the authority has directed the state government to provide JSW Steel with an opportunity to be heard before making any further decisions.

Company's Official Statement

In an official filing with the stock exchanges on May 2, 2025, JSW Steel stated:

"Revisionary Authority has set aside the aforesaid Demand Notices and the matter has been remanded back to the State Government of Odisha to dispose-off the same after giving proper opportunity of hearing to the Company."

The company further noted that it received the orders, along with their corrigendums, on May 1, 2025.

Implications and Next Steps

This development offers JSW Steel a chance to present its case more comprehensively before the Odisha government. The outcome of this fresh consideration could have significant financial implications for the company, given the substantial amount initially demanded.

As the case unfolds, investors and industry watchers will be keenly observing how JSW Steel navigates this regulatory challenge and its potential impact on the company's operations in Odisha.

Other Developments

In an unrelated matter, JSW Steel also disclosed that the Supreme Court has rejected its resolution plan for Bhushan Power and Steel. The company is awaiting the formal copy of the order to understand the grounds for rejection and its implications before deciding on further action.

JSW Steel continues to keep the stock exchanges informed of these developments as required under applicable regulations.

JSW Steel , one of India's leading steel producers, is navigating through a series of legal and regulatory challenges that could significantly impact its operations and financial outlook.

Appeal on 7.02 Billion Rupee Claim

JSW Steel has recently filed an appeal regarding a substantial claim of 7.02 billion rupees (approximately 702.00 crores) made by the Deputy Director of Mines. This claim pertains to alleged irregularities in iron ore mining operations at Narayanposhi, Jajang, Nuagaon, and Gonua mines. The allegations include:

• A drop in grade of production
• Violation of the mining plan
• Use of higher mesh size for screening

In a positive development for the company, a revisionary authority has set aside the demand notices related to this claim. The matter has been remanded back to the State Government of Odisha for further consideration, with instructions to provide JSW Steel a proper opportunity for a hearing.

Supreme Court Rejects Bhushan Power and Steel Resolution Plan

In a separate and potentially more impactful development, JSW Steel has faced a significant setback in its acquisition plans. The Supreme Court of India has rejected the company's resolution plan for Bhushan Power and Steel Limited (BPSL).

The judgment, pronounced on May 2, 2025, overturns the previous approval granted by the National Company Law Appellate Tribunal (NCLAT). While the specific grounds for rejection are yet to be fully disclosed, this decision could have far-reaching implications for JSW Steel's expansion strategy.

Company's Response

JSW Steel has acknowledged the Supreme Court's decision and stated that it is awaiting the formal copy of the order to understand the detailed grounds for rejection and its implications. The company has indicated that once it receives and reviews the order along with its legal advisors, it will decide on its further course of action.

Market Implications

These developments come at a crucial time for JSW Steel and the Indian steel industry at large. The outcome of the 7.02 billion rupee claim appeal could have significant financial implications for the company, while the rejection of the Bhushan Power and Steel resolution plan may require a reassessment of JSW Steel's growth and acquisition strategies.

Investors and industry observers will be closely watching how JSW Steel navigates these challenges and what impact they may have on the company's future performance and market position.

JSW Steel has committed to keeping the stock exchanges informed of further developments as required under applicable laws, ensuring transparency for its stakeholders during this period of legal and regulatory uncertainty.