Indian steel-affected communities launch complaint against banks

New complaint alleges banks failed to uphold human rights standards by lending to JSW Steel in India

Today, an anti-Jindal and anti-POSCO Movement (JPPSS) has filed a human rights complaint against the Australian bank ANZ, and the Japanese banks Sumitomo Mitsui Banking Corporation (SMBC), Mizhuo, and Mitsubishi UFJ Financial Group (MUFG) with support from BankTrack. (1) The complaint alleges that by financing Indian steel major JSW Steel, the banks are linked to numerous human rights violations stemming from the company’s JSW Utkal steel and coal project. (2)

Community members from JPPSS are demanding that the banks publicly refuse to finance the the Uktkal project and have called upon the banks to not provide further finance to JSW Steel until an independent investigation and remedy process has been concluded for all affected villagers.

In the period 2019-2024, it is alleged that the banks have participated in several loans to JSW Steel. (3) During the same period, the company is alleged to have taken land without consent from indigenous residents, destroyed local livelihoods, and co-operated with the state to criminalise local opposition to the project, the complainants claim. (4)

It is also alleged that peaceful demonstrators have faced excessive force by police, arbitrary arrest, ill-treatment in custody, and restriction on freedom of movement in their villages. Communities are said to be concerned that if built, the Utkal project would further strain the environment of a region already deemed to be one of the most polluted areas in India.

All four banks have policies in place committing them to act in line with international human rights standards, including a direct commitment to the principle of ‘free, prior and informed consent’ (FPIC). (5) BankTrack – the organization behind the issuance of the press announcement behind this story, emailed to Steel Times International by Julie Hovenier, banks and steel campaign lead, has already sent letters to the banks concerned requesting their engagement on the JSW Utkal Steel project, but, it is claimed, have received minimal responses. (6)

Debendra Swain, President of the Anti-Jindal & Anti-POSCO Movement: “When the banks give money to JSW Steel, that money is used to tear down our homes and crops, and punish those who oppose it, said Debendra Swain, president of the Anti-Jindal & Anti-POSCO Movement. Swain added that "JSW could not steal our land without support from banks, and so they must be held accountable.”

Prasant Paikray, spokesperson for the Anti-Jindal & Anti-POSCO Movement, commented: “We want the banks to stay far away from Dhinka. JSW cannot receive the funds to develop the Utkal project, or our future is at stake.”

Bhoomika Choudhury, Independent human rights researcher and lawyer: “The bank's financing of JSW Steel makes them complicit in the widespread harm faced by indigenous communities in Odisha. No bank should fund projects that steal land, destroy livelihoods, and criminalise peaceful dissent. Financial institutions must be held accountable for enabling these abuses—and they must listen when communities say no.”

Julia Hovenier, Banks and steel campaign lead at BankTrack said: “When banks like ANZ, Mizuho, MUFG, and SMBC freely lend to companies that turn a blind eye to the oppression of their critics, all of our freedom of expression rights are under threat. The banks must live up to their human rights commitments, and end their relationships with JSW Steel.”