ArcelorMittal, the world’s largest steel producer, withdrew its petition on Monday seeking Supreme Court clearance to return 2,643 acres acquired for a proposed six-million-tonne steel project in Karnataka. The Karnataka Industrial Area Development Board (KIADB) had earlier revoked show-cause notices, prompting ArcelorMittal’s decision.
The board’s withdrawal of notices on November 6 was acknowledged by the Supreme Court bench, which accepted the board’s stance and ArcelorMittal’s request to withdraw the petition. The steel producer had initially expressed its desire to return the land due to prolonged litigation and uncertainty, offering to forfeit the Rs 267 crore compensation paid to KIADB. ArcelorMittal argued that the proposed acquisition was for 4,856 acres but was allotted only 2,643 acres.
The Supreme Court had previously directed ArcelorMittal to pay enhanced compensation for 234.40 acres of land in response to a petition by farmers seeking increased compensation for land acquired by KIADB in 2010. Four days after the Supreme Court’s judgment, KIADB issued a show-cause notice intending to terminate its 2018 lease-cum-sale agreement with ArcelorMittal.
Describing KIADB’s action as “completely illegal and arbitrary,” ArcelorMittal expressed willingness to surrender the entire allotted land but requested it be returned to the original landowners, not KIADB. The company was ready to forfeit the money paid to the state agency in 2010.
ArcelorMittal contended that KIADB’s failure to allocate a promised central piece of 136.33 acres, necessary for contiguous land, hindered construction commencement. The company’s petition highlighted delays caused by the state in issuing essential mining leases and ongoing uncertainty over enhanced compensation for another 242 acres still in litigation, contributing to overall project uncertainty.