The Supreme Court verdict will have very large financial implications, as arrears may work out to the tune of more than ₹1.5 lakh crore to ₹2 lakh crore (trillion), industry players said on Wednesday.

“This order will give further jolt to the Indian mining industry as arrears may work out to the tune of more than ₹1.5 lakh crore to ₹2 lakh crore and the mines in the states like Odisha and Jharkhand would be most affected,” said B.K. Bhatia, additional secretary-general of miner’s body FIMI.

“Considering the severity of the issue and to have a stable tax regime for bolstering the growth of the mining sector, we feel that the Union government should take necessary legislative mitigating measures on an urgent basis,” Bhatia added.

In a regulatory filing on Wednesday, Tata Steel said it is currently studying the SC judgment dated July 25, 2024 along with order pronounced on Wednesday. Financial impact, if any, on the company will be disclosed in due course.

However, it had disclosed on July 31 that the company has a contingent liability of ₹ 17,347 crore as on June 30, 2024, following the SC judgment.

The company had informed that Odisha had introduced “Orissa Rural Infrastructure and Socio-Economic Development Act, 2004 (ORISED Act)” with effect from February 1, 2005, levying tax on mineral bearing land.

The company had filed a writ petition in high court of Odisha challenging the constitutional validity of the Act. The HC in December 2005 held that the state does not have the authority to levy tax on minerals. Odisha has challenged the order before the apex court.