ArcelorMittal logo.
Credit: Reuters Photo
World's largest steel producer ArcelorMittal has told the Supreme Court that it has decided to return over 2,643 acres of land and even forfeit over Rs 267 crore paid for setting up a steel plant at Karnataka's Ballari.
The company, led by senior advocate A M Singhvi, submitted before a bench of Justices Sanjay Kishan Kaul and Sudhanshu Dhulia, in view of the changed scenario the petitioner is not desirous of keeping the land and will return the entire land of 2643 acres.
The amount paid of Rs 267 crores can also be forfeited by the Karnataka Industrial Areas Development Board, it said.
However, KIADB sources said the development would result in a bonanza for the board as paying the farmers' compensation, the board can allot the land to various others industries. Karnataka does not have a large ready made land bank, they said.
Taking a writ petition filed by the ArcelorMittal India Pvt Ltd, the bench issued notice to the KIADB.
The court also asked the board to tell whether it would retain the land after payment compensation to the landowners or return it back to them.
Senior advocate Kiran Suri and advocate Nishanth Patil, appearing for the Board, sought time to file response after obtaining instructions.
The court also recorded the concern of the counsel for the farmers that they have to receive compensation and whether the petitioner or any third party with whom the Board has to deal with.
The court fixed the matter for consideration on October 30.
Earlier this year, the Supreme Court had ordered Arcelor Mittal to pay enhanced compensation of more than Rs 30 lakh each for about 300 acres of land acquired by Karnataka Industrial Areas Development Board in 2010 for setting up a steel plant of the company at Ballari.
A group of farmers had then approached the top court against a decision to re-examine their plea for enhanced compensation for their land out of 4865.64 acres acquired in Ballari.
The petitioner said just four days after the judgement, KIADB issued a show cause notice on February 4, 2023 and then on March 3, 2023 purporting to terminate the lease cum sale agreement of November 14, 2018 executed with KIADB.
It claimed KIADB sought to unjustly enrich itself at the cost of the petitioner, in an exercise which is "completely illegal and arbitrary and violative of Articles 14, 19(1)(g) and 21 of the Constitution".
The company asked the court to quash the show cause notice and return the entire land upon cancellation to the landowners without any liability upon it, and with liberty to seek refund of compensation already paid.