Ahmedabad: The Gujarat High Court on Friday pulled up ArcelorMittal (formerly Essar Steel) for taking more than a decade to comply with conditions attached to the forest clearance granted in 2013, observing that the delay cannot be ignored and may require higher compensation to the State government.

A Bench of Chief Justice Sunita Agarwal and Justice Vaibhavi D. Nanavati said the company’s ₹3-crore compensation offer was inadequate and indicated that a substantially higher amount may be required if it wants to retain the land, failing which the land may have to be returned to the State.

“So what we are saying is that if you are really interested in keeping this land, then you have to do something more. Otherwise return it. This is a forest land, return it. In-principle approval stands revoked after 5 years. They (State) will utilize the land, restore the forests in that land,” observed Justice Agarwal during the hearing, Bar & Bench reported.

The Bench said that although the company had taken some steps, they were not sufficient considering the conditions were imposed more than ten years ago.

“For over ten years there are lapses on the part of the company… So what we are saying is that these lapses can be met or can be compensated. Not met, rather you are required to compensate it. So if you give us a reasonable figure, then we will decide it. But you are telling ₹3 crores. ₹3 crores is peanuts for you,” the Bench said.

The Court also questioned the State authorities for failing to ensure compliance for nearly a decade.

“What were you doing for 10 years? Is there any responsibility of the State officers to see that the compliance is made?” the Bench asked.

The case arises from a long-pending PIL regarding compliance with conditions attached to the Centre’s in-principle approval dated June 8, 2013, for diversion of forest land in Gujarat, which required payment of penalties and transfer of alternative land for ecological purposes.

The State told the Court that nine communications were sent to the company between 2014 and August 2025, and the first required parcel of land was transferred only in October 2024, more than a decade after approval. The Bench termed land transfer a crucial condition that remained pending for years.

Senior Advocate Mukul Rohatgi, appearing for ArcelorMittal, said the company had complied with several conditions and had already handed over 133 hectares of land to the State for compensatory afforestation. He argued that insolvency proceedings after 2017 and the COVID-19 pandemic contributed to the delay.

The Court, however, said the delay could not be overlooked as the company had accepted the conditions and was required to fulfil them within a reasonable time. It clarified that the issue was not undoing the project but fixing accountability for the prolonged non-compliance.

The matter will be heard again after the company submits a revised proposal on compensation. DeshGujarat