Sunflag receives Rs 28 cr demand notice in coal case

Sunflag Iron & Steel Company today said it has received a notice for depositing Rs 28 crore as levy following the Supreme Court's judgement on coal block allocation.
The Supreme Court "directed that an additional levy of Rs 295 per metric tonne of coal extracted since commissioning of the mines be paid by all allocates, including the company by December 31", the company said in a filing to the BSE.
According to the filing, it "has received a demand notice ...From the office of the Collector, Chandrapur for depositing of Rs 28,06,03,091 as additional levy...For the period December, 2007 until September 24, 2014".

The Supreme Court last month quashed allocation of 214 coal blocks alloted to various companies since 1993.
"Supreme Court vide its judgment dated September 24 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 company said.
In a major blow to the corporate sector, the Supreme Court had on September 24 quashed allocation of 214 out of 218 coal blocks alloted to various companies since 1993 terming it as "fatally flawed" and allowed the Centre to take over operation of 42 such blocks which are functional.

The bench directed the allotees of coal blocks to pay within three months an additional levy of Rs 295 per metric ton of coal extracted to compensate financial loss caused to the exchequer by the illegal and arbitrary allotments.