Counsels appearing for the OMC, owned by Karnataka ministers G Janardhan Reddy and G Karunakar Reddy, told the  court that the company fears that heaps of iron ores that are kept out in the open ground will be damaged by rain. They apprehended that the iron ore would be oxidised and thereby lose its value. On this, a three-judge special forest bench headed by Chief Justice S H Kapadia asked the state to give its opinion on the issue.

Attorney General Goolam E Vahanvati, appearing for the state government, told that he would take instructions and inform the court. Following this, the bench adjourned the matter for a week.

The  court was hearing a plea by the OMC to grant it permission for sale of around 2.5 lakh metric tonnes of iron ore lying at mines in AP to enable the company to pay taxes.