JSW Steel got relief on October 18 as the Orissa High Court quashed a ₹696 crore mining penalty. The court also set aside a separate ₹1,473 crore demand, asking authorities to reconsider the matter. These rulings followed petitions from the company regarding mineral dispatch shortfalls at its Jajang Iron Ore Block.

JSW Steel on Sunday, October 18, said the Orissa High Court had quashed a penalty of ₹696 crore imposed by the mining authorities in Joda, Odisha. The court also set aside a separate demand of ₹1,473 crore and directed the authorities to reconsider the matter, according to a report by CNBC TV 18.

In an exchange filing on Sunday, the company said the court concluded hearings and delivered its judgments on October 16, 2026. The rulings came in response to separate petitions filed by JSW Steel challenging the demands raised by the Joda mining authorities.

Why was JSW Steel fined ₹696 crore?

According to CNBC TV 18 report, JSW Steel said it received a demand letter and a corrigendum from the Joda authorities on September 6, 2021, seeking ₹696.32 crore. The demand related to shortfall in mineral dispatches from the company's Jajang Iron Ore Block during the first year of its Mine Development and Production Agreement, which ran from June 27, 2020, to June 26, 2021.

The company subsequently filed a writ petition before the High Court, seeking to quash the demand.

The court disposed of the petition on October 16, 2026, in line with its earlier judgment dated April 20, 2026. Following the ruling, JSW Steel said it believes the 2021 demand stands quashed.

Court sends ₹1,473 crore penalty demand for fresh review

In a separate case, JSW Steel received another demand letter from the Joda authorities on August 21, 2025, seeking ₹1,472.69 crore.

The demand concerned a shortfall in mineral dispatches from the Jajang Iron Ore Block during the fifth year of the Mine Development and Production Agreement, from June 27, 2024, to June 26, 2025.

JSW Steel challenged this demand before the high court, seeking to have the letter quashed.

On October 16, 2026, the court set aside the 2025 demand letter and sent the matter back to the concerned authority for a fresh decision. The authority has been directed to reconsider the matter in light of the legal position explained in the court's April 20, 2026, judgment.

JSW Steel shares rise 1.3%

JSW Steel shares closed the previous trading session 1.3% higher at ₹1,216.30 apiece.

However, the stock has fallen 4.7% over the past month. It has gained 3.8% so far this year.