Odisha High Court rejects Vedanta's bid to enforce 2004 bauxite supply pact

On Thursday, the Odisha High Court rejected Vedanta Ltd's writ petition seeking enforcement of a 2004 memorandum that promised the supply of 150 million tonnes of bauxite for its Lanjigarh refinery at a fixed price. The bench, comprising Chief Justice Harish Tandon and Justice Murahari Sri Raman, held that the doctrine of promissory estoppel cannot compel a government to contravene statutory mining provisions or to create enforceable commercial rights over resources held in public trust.

It set aside prior interim orders and permitted the Odisha Mining Corporation, the Steel and Mines Department and the Ministry of Mines to act according to the Mines and Minerals (Development and Regulation) Act and the 2016 concession rules. Vedanta had previously challenged the state's 2020 amendment of Rule 45, which raised the floor price of bauxite in e-auctions, arguing it broke the earlier long-term linkage pricing framework. The court noted that the original 2004 and 2009 agreements were terminated in 2015 and that Vedanta had subsequently accepted the new LTL regime.