The Nagpur Bench of the Bombay High Court has given relief to Dalmia Cement (Bharat) Limited by directing the State of Maharashtra to grant a full two-year extension of the Letter of Intent (LOI) for a limestone mining lease in Chandrapur district.
The court was hearing a writ petition filed by Dalmia Cement challenging a state government letter dated September 1, 2025, which denied proper extension of the LOI for the Gojoli Mineral Block. The case was heard by Justices Anil S Kilor and Rajnish R Vyas.
Dalmia Cement had emerged as the preferred bidder for the Gojoli limestone block after offering the highest bid in a government auction. The company received the LOI in September 2020, valid for three years and extendable by two more years under the Mineral (Auction) Rules, 2015.
However, the project faced several delays due to reasons beyond the company’s control. These included an increase in forest land area requiring clearance, the notification of the nearby Kanhargaon Wildlife Sanctuary, restrictions due to eco-sensitive zones and the need for wildlife and forest approvals. Because of these issues, mining operations could not begin within the original period.
Dalmia Cement applied for a two-year extension in May 2023, before the initial three-year period expired. The state government delayed its decision and finally granted an extension in April 2025, but only up to September 9, 2025, giving the company barely five months instead of the full two years.
The High Court ruled that this was incorrect. It held that once delays are found to be beyond the control of the bidder, the law mandates a complete two-year extension. The court said the state had no discretion to reduce this period and that the extension should be counted from the date it is actually granted, not from the date of expiry of the original term.
The court quashed both the September 1, 2025 rejection letter and the earlier extension order to the extent it curtailed the period. It directed the State of Maharashtra to grant Dalmia Cement a full two-year extension, excluding the already lapsed period.

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