Odisha yet to recover Rs 2,700 crore in illegal mining dues: SC seeks clearance by March 2026

The Supreme Court has directed the Chief Justice of the Orissa High Court to constitute a dedicated bench to hear matters in which recovery proceedings linked to illegal mining have been stalled due to interim orders.

The direction came during the hearing of a Miscellaneous Application concerning non-recovery of dues from mining leaseholders. It was despite the Supreme Court’s landmark 2017 ruling, which mandated compensation from defaulting miners operating in Keonjhar, Sundargarh and Mayurbhanj districts.

Odisha’s latest status report, filed on October 29, noted that recovery of more than Rs 2,700 crore remained pending, prompting the Court to reiterate its ‘serious displeasure’ over the pace of action.

The SC bench asked the High Court to make an effort to dispose of these cases by March 3, 2026, adding that if final adjudication is not possible within this period, the High Court should at least decide the State’s applications to vacate the stays granted earlier.

Slow Recovery Remains Under Scrutiny

The latest direction follows repeated observations by the Supreme Court regarding the state’s slow progress.

In earlier hearings this year, the bench had questioned the pace of enforcement, noting that the 2017 ruling had found 215.5 million tonnes of iron and manganese ore illegally extracted between 2000–01 and 2010–11, valued at Rs 17,500 crore. The Court had ordered full recovery of dues from 102 leaseholders involved in the violations.

In January 2025, Odisha informed the SC that Rs 2,721.65 crore was still pending. The bench has since monitored compliance through multiple status updates, expressing concerns about the ‘mode and manner’ in which the recovery process was being implemented.

Odisha’s Broader Enforcement Actions

The Supreme Court’s directive arrives amid increased state-level action against illegal mineral extraction.

According to official submissions made last week in the Odisha Assembly, the state has collected Rs 126 crore in fines related to illegal minor mineral mining and transportation between 2022 and October 2025.

Authorities reported 15,187 seizures and 3,219 registered cases across 30 districts, with 11 tehsils identified as hotspots for illegal sand mining. Revenue collection from the mining sector in the current financial year has reached Rs 655 crore up to September, as per the Mines Minister’s written reply.

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New Rules Approved

In November, the Odisha Cabinet approved the Odisha Minerals (Prevention of Illegal Mining and Regulation of Trading, Transportation & Storage) Rules, 2025, replacing the 2007 framework.

Officials said the new rules were drafted following findings by the Comptroller and Auditor General that the state incurred a revenue loss of Rs 22,392 crore between 2015 and 2022 due to undervaluation and excess extraction of minerals.

The revised framework includes provisions for scientific sampling, drone-based surveillance and an e-lottery system for granting minor mineral leases. The government has capped the maximum number of quarries an individual may lease to three per district and five across the state.