HC dismisses Ispat's plea against Virangana licence

MUMBAI: The Bombay High Court has dismissed Ispat Industries’ petition against the Maharashtra government’s decision to grant licence to a Nagpur-based company and asked the company to approach the Central government for revising the award.

The division bench comprising Justice Ranjana Desai and Justice Mridula Bhatkar observed that the state government had only recommended Nagpur-based Virangana Steel’s application for a prospecting licence to explore iron ore reserves in Gadchiroli district and approval of the Central government was awaited.

The division bench held that Ispat might move to the Centre with its objection to the allocation of the licence.
Pramod Mittal-controlled Ispat produces nearly 3 MT of hot rolled coil and 0.4 MT of cold rolled coil in Maharashtra.

Ispat filed the writ petition submitting that it had made an application to the state government for the prospecting licence for Gadchiroli, but the state government granted it to Virangana Steels, despite the latter’s representative not being present when all the applicants made submissions to the minister.

State government pleader DA Nalawde, however, submitted that Virangana Steels’ written submissions were filed much earlier before the chief minister and all relevant factors were considered before granting the licence.