In a recent development, ArcelorMittal, the world’s largest steel producer, has informed the Supreme Court that it intends to relinquish 2,643 acres of land and forfeit the Rs 267 crore it had paid for establishing a steel plant in Ballari, Karnataka. Represented by senior advocate A M Singhvi, the company stated its decision was influenced by the altered circumstances, expressing its lack of interest in retaining the land and willingness to return the entire 2,643-acre tract. Furthermore, ArcelorMittal indicated that the Rs 267 crore payment could be retained by the Karnataka Industrial Areas Development Board (KIADB).
However, sources from KIADB viewed this development as an opportunity, as it would enable the board to allocate the land to various other industries once it compensates the farmers. They emphasized the scarcity of readily available land banks in Karnataka.
The Supreme Court, in response to a writ petition filed by ArcelorMittal India Pvt Ltd, issued notice to KIADB. The court also requested KIADB’s stance on whether it intended to keep the land after compensating the landowners or return it to them.
Senior advocate Kiran Suri and advocate Nishanth Patil, representing the Board, sought time to prepare their response after obtaining instructions.
Additionally, the court acknowledged the concerns raised by the farmers’ counsel regarding compensation and the involvement of any third party with whom the Board might transact. The matter has been scheduled for consideration on October 30.
Earlier this year, the Supreme Court had directed ArcelorMittal to provide enhanced compensation exceeding Rs 30 lakh per acre for approximately 300 acres of land acquired by KIADB in 2010 for the company’s steel plant in Ballari. A group of farmers had approached the court, challenging the decision to revisit their request for increased compensation for their land among the 4,865.64 acres acquired in Ballari.
The petitioner highlighted that shortly after the judgment, on February 4, 2023, and then again on March 3, 2023, KIADB issued a show-cause notice, ostensibly terminating the lease-cum-sale agreement from November 14, 2018, with the company. ArcelorMittal contended that KIADB’s actions aimed to unjustly benefit itself at the company’s expense, characterizing the process as “completely illegal, arbitrary, and in violation of Articles 14, 19(1)(g), and 21 of the Constitution.”
ArcelorMittal has called on the court to quash the show-cause notice and return the entire land to the landowners without imposing any liability on the company. They also seek the option to request a refund of the compensation already disbursed.