Relief for JSL in chrome ore penalty case

Bhubaneswar: 
The Revision Authority (RA), under the Union mines ministry, has put on hold
the Odisha government order directing Jindal Stainless Ltd (JSL) to pay Rs 6
crore as penalty. The penalty was issued for shortage of chrome ore found
during audit. However, the authority had said that the government can initiate
fresh proceedings against the company only under the relevant sections of MMDR
act.

The Deputy Director Mines (Mines), Jajpur road 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. Subsequently 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 state 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.


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