JSL gets relief in chrome ore penalty case

The Revision Authority (RA), under the Union mines ministry, has set aside an Odisha government order directing Jindal Stainless Ltd (JSL) to pay Rs 6 crore for shortage of chrome ore found during audit.

The Jajpur road Deputy Director Mines (Mines) had issued a penalty notice of Rs 6 crore against JSL due to mismatch of chrome ore tailings or wastages raised from its Kaliapani chromite mines and the amount recorded in the book balance.

The company was asked to pay the cost price, royalty and other taxes for 10,155 tonne chrome tailing which was found missing during physical verification of the mine as per section 21 (5) of Mines and Minerals Development and Regulation (MMDR) Act.

 

“I do not find any proof of removal of tailings and the case seems to be based on notional of discrepancy of figures in computation in various returns. In the circumstances, it is held that there is no case for invocation of Section 21 (5) of MMDR Act and as such the order is set aside,” said the final order of the RA.

The authority upbraided the government for issuing a penalty order for the materials without giving the company a chance to be heard. But it said, the state government can initiate a fresh proceeding against the company.

“The state government is at liberty to initiate fresh proceedings against the Revisionist (JSL) under relevant sections of MMDR Act, and take appropriate action after providing copies of the relied documents and full opportunity of hearing,” the final order said.

The Authority, however, said, the issue of Transit Permit and Mining Due Clearance Certificate (MDCC) should not be stopped. The Jajpur Road DDM had refused to issue transit pass (TP) for mineral transportation and Mining Dues Clearance Certificate (MDCC) to the company. JSL raises chromite from the Kaliapani mines for its steel plants based in Haryana and Andhra Pradesh.