Biju Janata Dal (BJD) has leveled serious allegations against BJP MPs, claiming their support for the MMDR Amendment Act, 2026, could deprive Odisha of ₹1 lakh crore in legitimate mineral arrears.
- BJD claims BJP MPs supported mining laws despite knowing the financial impact on Odisha.
- The MMDR Amendment Act, 2026, could result in a ₹1 lakh crore loss for the state.
- Advocate General of Odisha confirmed the arrears are a legitimate state entitlement.
In a major political escalation, the Biju Janata Dal (BJD) on Tuesday leveled serious allegations against Odisha's Bharatiya Janata Party (BJP) MPs. The party claims that these lawmakers supported the Mines and Minerals (Development and Regulation) Amendment Act, 2026, despite being fully aware that the legislation could deprive the state of nearly ₹1 lakh crore in arrears.
Addressing a press conference, BJD Rajya Sabha MP Santrupt Misra stated that the Odisha government had already maintained its stance before the Supreme Court. "On behalf of the Odisha Government, Advocate General Pitambar Acharya, in an affidavit filed before the Supreme Court, had stated that the ₹1 lakh crore in arrears was Odisha’s legitimate entitlement and that the State would suffer substantial financial loss if it did not receive the amount," Misra alleged.
Why This Matters
BozokMedia analysis shows that this legislative move strikes at the heart of fiscal federalism in India. The controversial Section 9D of the new Act stipulates that any tax, cess, or levy on mineral rights that was not recovered by the State government before the commencement of the amended Act would be deemed invalid. This effectively nullifies the potential retrospective revenue gains that the state was expecting following a landmark Supreme Court judgment.
The insertion of Section 9D represents a significant shift in power, potentially stripping states of their ability to claim historical mineral dues.
Former Chief Minister and BJD president Naveen Patnaik had previously voiced strong objections to this amendment. The tension arises from the July 25, 2026, Supreme Court judgment where a nine-judge Bench held that States possess the authority to impose taxes and levies on mines and mineral-bearing land. The new central amendment appears to directly counter the spirit of this judicial mandate.
Historical Background & Financial Implications
According to the 'Odisha Review' (the state's official magazine published in November 2025), the state was positioned to reap massive monetary gains. Following the Supreme Court's ruling, Odisha could have retrospectively levied taxes from April 1, 2005. Projections suggested the state would receive over ₹1 lakh crore in installments over a 12-year period starting in April 2026, alongside an annual ₹12,000 crore under the ORISED Act 2004.
| Feature | Supreme Court Ruling | MMDR Amendment 2026 |
|---|---|---|
| Taxing Power | States can tax mineral lands | Limits retrospective tax claims |
| Revenue Impact | Potential ₹1 Lakh Cr gain | Potential ₹1 Lakh Cr loss |
Frequently Asked Questions (FAQ)
1. What is the core of the BJD's allegation?
BJD alleges that BJP MPs supported an amendment that strips Odisha of its right to collect ₹1 lakh crore in mineral arrears.
2. How does Section 9D affect the state?
Section 9D invalidates any mineral-related taxes or levies that were not collected by the state prior to the amendment's commencement.
