SMPL to Knock Court’s Door against Odisha Government’s Notice Imposing Penality of Rs 2,056 Crore

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By Our Correspondent

BHUBANESWAR/BARBIL: The Arjun Saraswat run Sarada Mines Pvt Ltd may approach either Odisha High Court or any other legal forums to fight back the fine imposed amounting Rs 2,056 Crore by Naveen Patnaik led Odisha Government on it over excess mining under Joda mining circles of State’s Mineral rich Keonjhar.

It may be noted here that in September 2020, the Delhi High Court had stayed the order of Union Environment, Forest and Climate Change to halt mining operations at Thakurani iron ore block under Joda mining circle of Odisha’s mineral rich Keonjhar. The Thakurani block of SMPL was a supplier of iron ore to Naveen Jindal-led Jindal Steel and Power Ltd (JSPL) Group. Sources said, SMPL has necessary environment clearance for mining operations .

“Imposing this huge penalty on SMPL is injustice by the regulators and we will be challenging the demand at the appropriate forum for justice,” a senior Company official told www.indianewsdiary.com over phone from Barbil in Keonjhar on Sunday. He termed the move of the State Government is illogical and arbitrary.

The State Steel and Mines Department had sent a demand notice to SMPL for recovery of Rs 2,056 crore for excess mining. The Joint Directorate located at Joda in Keonjhar district sent the notice to Sarda Mines under Section 21 (5) of MMDR Act, 1957 for excess mining in a month on pro-rata basis without the required environmental clearance.

Sources said ,a notice was sent to Sarda Mines on October 6. As no reply was submitted by Sarda Mines, another notice was sent on January 7. The mining company submitted a reply to the Mines Directorate on January 25. Dissatisfied with the reply of Sarda mines, the joint director sent a demand notice.

The Supreme Court had in January 2020 given a relief to SMPL by allowing it to resume mining operations at Thakurani iron­-ore mines provided it paid around `933 crore towards environmental compensation to the State Government and gave an undertaking to comply with all the rules, regulations and other mandatory provisions for carrying out mining operations.

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