SBI-led consortium of banks moves SC in Odisha-JSPL iron ore case

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New Delhi: A consortium of banks led by the State Bank of India (SBI) moved the Supreme Court on Monday seeking to be heard in an ongoing case between Jindal Steel and Power Ltd (JSPL) and the Odisha government over the company’s claim on 12 million tonnes of extracted iron ore.

The application was brought before a bench headed by justice Madan Lokur that said the matter would be taken up after four weeks.

In its application, the banks have claimed that JSPL owes them Rs7,400 crore and if the company was not allowed to lift the extracted iron ore, their chances of recovering the amount would be impacted.

The court was hearing a case by the Odisha government seeking to bar JSPL from accessing the extracted iron ore in Keonjhar mine in Odisha which the company claims was mined before the state government imposed a ban on mining.

An order passed by the Orissa high court had allowed JSPL to lift iron ore from the mine. Keonjhar mine in Odisha currently belongs to Sarda Mines Pvt. Ltd and mining activities stand suspended since March 2014 on the ground of lack of proper environmental clearances.

The consortium of banks include ICICI Bank, IDBI Bank, Canara Bank, HDFC Bank, Axis Bank and State Bank of Patiala.