Part of the diversified Jaypee Group, Jaiprakash Power Ventures Ltd (JPVL) announced on Friday (December 13) that the Andhra Pradesh High Court has stayed penalties amounting to approximately ₹1,334 crore imposed by the Department of Mines & Geology (DMG). The penalties stemmed from allegations of illegal sand extraction, storage, transportation, and sale.
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“…it is informed to the exchanges that the High Court of Andhra Pradesh, in a clutch of writ petitions filed by the company against the State challenging the imposition of penalty(ies) against the company by the Department of Mines & Geology Offices (DMG) aggregating to approx. ₹1,334 crore in respect of various demand notices relating to alleged illegal extraction, storing transportation and selling of sand, has stayed such demands vide several orders, the last being 5th December 2024,” Jaiprakash Power Ventures said.
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The high court issued the stay orders across multiple writ petitions filed by the company, with the most recent order dated December 5, 2024. The court observed that the DMG’s actions exceeded its jurisdiction and authority.
The penalties relate to demand notices issued after the lease period for sand mining operations had expired in May 2023. JPVL had completed and handed over the mining operations, which were subsequently allocated to other parties. Despite this, the DMG issued the demands long after the company ceased its involvement.
“It is important to note that since all the contracts were sub-contracted on a back-to-back basis (in due knowledge of DMG, Government of Andhra Pradesh) and the subcontractor was/is responsible/liable under the contracts, therefore, there will be no material impact of above-stated demand notices of DMG on the state of affairs of the company,” it added.
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JPVL stated that it has been regularly updating developments related to its sand mining contracts in its quarterly financial reports. Shares of Jaiprakash Power Ventures Ltd ended at ₹18.85, up by ₹0.14, or 0.75%, on the BSE.
