Sunflag Iron & Steel Company updates on cancellation of coal blocks

Receives demand notice for Rs 28.06 crore in terms of additional levy

Sunflag Iron & Steel Company announced that the Hon'ble Supreme Court of India vide its judgment dated 24 September 2014 has passed an order by which allotment of all coal blocks (during the period from 1993 to 2012) except four (4) Coal blocks stands cancelled.

In terms of this order, Belgaon Coal block (operative coal mines) which was allotted to the Company for captive usage stands cancelled, effective March 31, 2015. The Hon'ble Supreme Court has also directed that an additional levy of INR 295/- per metric tonne of coal extracted since commissioning of the mines be paid by all allocates, including the Company by 31 December 2014.

In connection with the above, the Company has received a demand notice dated 04 October 2014, received on 07 October 2014, from the office of the Collector, Chandrapur for depositing of INR 28,06,03,091/- as additional levy (@ INR 295/- per MT) before 31 December 2014 for the period December, 2007 until 24 September 2014, i.e., the date of the Order of the Hon'ble Supreme Court of India.

For the period commencing on 25 September 2014 until the effective date of cancellation, the additional levy (@ INR 295/- per MT) will be payable along with the royalties paid by the Company to the Government of India.

Powered by Capital Market - Live News