Supreme Court notice to ArcelorMittal's MD on contempt plea on land compensation

The contempt petition filed by an agriculturalist alleging non compliance of January 31, 2023 order on payment of compensation for land acquired for setting up a steel plant in Ballari.

New Delhi: The Supreme Court has issued notice to MD of ArcelorMittal India Pvt Ltd on a contempt petition filed by an agriculturalist alleging non compliance of January 31, 2023 order on payment of compensation for land acquired for setting up a steel plant in Ballari.

A bench of Justices Abhay S Oka and Augustine George Masih sought a response from Aditya Mittal, MD, after hearing senior advocate Anand Sanjay M Nuli on behalf of contempt petitioners J Nagappa and J Srinivas from Ballari.

"Issue notice to the alleged contemnor no 4, returnable on 20th August, 2024. For the time being, the personal presence of the alleged contemnor no 4 is dispensed with," the court said in its order of July 9.

The petitioners sought a direction for initiation of contempt proceedings against Karnataka's Chief Secretary, Karnataka Industrial Area Development Board's CEO and others including MD of ArcelorMittal.

The court, however, preferred to seek response from the steel company's official only.

The plea for court claimed alleged deliberate disobedience of the apex court's order of January 31, 2023, which set aside the Karnataka High Court's order and restored awards made by the reference court. The apex court had then directed the beneficiary company to pay the entire amount payable as per the award of the reference court to the owners within a period of three months.

It contended the actions of the contemnors in continuously attempting to delay the process of paying the required compensation to the petitioner as well as the other land losers has resulted in great difficulties to them as they are all farmers who rely upon their land for their survival. Upon acquisition of their lands, the petitioners as well as the land losers are yet to see the light of day despite the issued having attained finality on January 31, 2023 itself.

"The petitioners and land losers are poor fanners, many of whom have passed away as well during the pendency of proceedings as a consequence of not receiving sufficient compensation from the contemnors which has caused even greater mental pain and agony to the surviving land losers including the petitioner," their plea said.

In 2010, Karnataka Industrial Areas Development Board sought to acquire over 2500 acres of land for setting up a steel plant of the company at Ballari.

In October, 2023, World's largest steel producer ArcelorMittal, however, told the court that it has decided to return over 2643 acres of land and even forfeit over Rs 267 crore paid for setting up the steel plant, in view of changed scenario.

The KIADB had issued a show cause notice to the company on February 04, 2023 and then on March 03, 2023 purporting to terminate the lease cum sale agreement of November 14, 2018.

Subsequently, in November, 2023, the KIADB had told the court it has withdrawn its February 4 and March 3, 2023 show cause notices issued to steel producer.