Posco-India has decided to challenge the Orissa High Court order on Khandadhar iron ore mines in the Supreme Court. Sources in Posco-India said the company will file a petition in the apex court on October 8 challenging the order.
The Orissa government has also decided to file a special leave petition in the Supreme Court against the high court order. Sources in the government said the SLP will be filed some time during this week.
The Orissa High Court, in its order on July 14, rejected the state government?s decision recommending Khandadhar mines in favour of Posco-India. The court directed the state government to reconsider the claims of other applicants for the mines.
A division bench of the Orissa High Court comprising justices BP Das and BP Ray had directed the state government to hear all applications for the mines again and take a decision within four months. According to
the standing counsel
for the state steel & mines department Srikanta Nayak, ?the court has observed that the ?relative merits are insufficient? in deciding in favour of Posco-India.?
Even though the Supreme Court, in a recent judgment on a similar case (JSW Steel and Kalyani Steel), decided against granting of mines leases out of turn, the Orissa government has decided to go to the Supreme Court on Posco-India?s case. The reason the government is going to the apex court is to checkmate others who are looking to stall granting of mines out of turn to companies willing to add value to minerals.
?We have recommended mines to about a dozen companies on an out of turn basis using the provisions of 11(5) of the Mines and Minerals Development and Regulation (MMDR) Act. 1957,? said a government official adding, ? Now if we won?t go to the Supreme Court, other aggrieved parties will cite the case of JSW Steel and try to obtain a favourable court order.?