Pay land premium to Odisha govt: SC directs MCL

supreme court

Last Updated August 22, 2023

supreme court

Jharsuguda, Aug 22: The Supreme Court of India has dismissed the miscellaneous application of the Mahanadi Coal Fields Ltd hearing its prayer not to deposit land premium for the acquired government land.

Hearing the year-long dispute between the Odisha government and MCL over land premium, the apex court further made it clear that the MCL is bound to deposit the royalty and premium of the land it has taken from the Odisha government.

According to a preliminary assessment, the MCL has to pay around Rs 600 crore premium for the land it has acquired in Jharsuguda.

According to reports, the MCL was not depositing the premium for government land acquired by it before April 28, 1989. It was only giving royalty to the explored coal. 

Defying the Jharsuguda district administration, the MCL had challenged Orissa High Court's decision in the Supreme Court. 

The apex court dismissed its plea in January and directed to deposit both land premium and royalty.

However, the MCL filed a miscellaneous application in the apex court in July to reconsider the decision. It dismissed the application during a hearing on August 18.

Notably, before the constitution of Jharsuguda district, the undivided Sambalpur district Collector had demanded the MCL to deposit a premium of Rs 70 lakh for the acquired government land and Rs 40 lakh compensation on March 15, 1984, however, it did not agree.

Later, Jharsuguda Collector demanded land premium in 1994 which the MCL challenged in the Orissa High Court in 2009.

The High Court delivered its verdict in 2019 directing MCL to deposit both the land premium and royalty.

Later, MCL challenged the High Court's verdict in the apex court.

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