Tribunal stays DDM order in JSL mines case

In a shot in the arm for JSL Ltd, the revision tribunal of the Union mines ministry has stayed the order of deputy director of mines-DDM (Jajpur) in the matter relating to imposition of penalty of Rs six crore for alleged unreported production by the company from its Kaliapani chromite mines.

JSL had challenged the order of DDM in the revision tribunal, claiming that the demand for penalty was based on incorrect assumption, surmises and hypothesis. Since the state government is yet to file its counter to the revision application of JSL, the tribunal has not announced its final order and has stayed the recovery of the demand on the company till the next date of hearing which will be fixed after the reply of the government.

“Earlier, we had approached the DDM-Jajpur and Director (Mines), requesting them to furnish the basis of their calculation of unreported production of chrome ore but of no avail. The authorities had refused to issue transit permit and mining due clearance certificate (MDCC) and this forced us to contest the order of DDM-Jajpur in the revision tribunal,” said Rajdeep Mohanty, resident director, JSL Ltd.

The tribunal has held that the state government cannot withhold transit permit (TP) citing the demand for penalty since as per law, the state is bound to issue TP within 14 days of request. Similarly, MDCC also cannot be withheld as the order is sub-judice and cannot be effected to for the issuance of MDCC.

The DDM-Joda in the order, had sked JSL to deposit Rs 6 crore towards cost price (including royalty) of 16,685.33 tonnes of chrome ore. The DDM held that the balance tailings come to 236,836.33 tonnes as against the book balance of 246,991 tonnes, causing shortage of 10,155.33 tonnes of tailings. Accordingly, JSL was liable to pay for the cost price, royalty and other taxes for shortage quantity of 10,155.33 tonnes of tailings and feeding quantity of 6,530 tonnes.

The revision tribunal has held that the very demand for price recovery under Section 21 (5) of Mines and Minerals (Development & Regulation) MMDR Act-1957 is throughly misconceived and devoid of any merit.

“No unauthorized or unreported transfer of minerals from the lease hold area was ever found. Tailings were never removed from the lease hold area of Kaliapani chromite mines. Tailings have no commercial value and thus are waste materials. Even their reporting is not mandatorily required under the MMDR Act and Mineral Concession Rules-1960. However, the same has been properly reported voluntarily by the company in its annual return and has been verified and certified by mining officials,” said the order of the tribunal.