JSW Steel Share Price in Focus After Supreme Court Upholds Karnataka's ₹128 Crore Bond Forfeiture

The Supreme Court has declined to intervene in Karnataka's decision to confiscate performance guarantees from JSW Steel, citing unmet production obligations. 

SC Dismisses JSW Steel's Appeal Against Bond Seizure 

As per news reports, on February 19, 2026, a Supreme Court bench headed by Chief Justice Surya Kant refused to stay Karnataka's directive to forfeit JSW Steel's ₹128 crore performance securities.  

The state's mines and geology director ordered the confiscation, alleging the company failed to meet minimum iron ore production requirements at a Chitradurga district mine. 

JSW Steel's Legal Challenge 

JSW Steel approached the Supreme Court after the Karnataka High Court denied relief on February 16, 2026.  

Represented by senior counsel AM Singhvi, the company argued the state violated natural justice principles by issuing the order without prior notice or a hearing. The appeal cited Article 14 violations under the constitution. 

Production Shortfall Justification 

JSW Steel attributed its inability to meet 2020-2022 production targets to circumstances beyond its control. These included the COVID-19 pandemic and ore quality discrepancies, where actual deposits were significantly inferior to those described in the 2019 bid documents. 

Read More: JSW MG Motor Plans ₹3,000 Crore Investment for Plant Expansion and New Launches! 

Mine Lease Background 

JSW Steel secured the Chitradurga mine lease through a 2019 auction. The company claimed state authorities created impediments to production and ignored requests to relax output mandates during the disputed period. 

JSW Steel Share Price Performance  

As of February 19, 2026, at 2:10 PM, JSW Steel share price on NSE was trading at ₹1,232.00 down by 1.53% from the previous closing price. 

Conclusion 

The Supreme Court's decision allows Karnataka to proceed with confiscating JSW Steel's ₹128 crore performance bonds. This follows allegations of unmet iron ore production targets between 2020-2022, which the company attributed to external factors including the pandemic and ore quality issues. The ruling underscores enforcement of production benchmarks in mining leases. 

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