Vedanta Shares: The Odisha government has demanded a huge sum of ₹1,255.37 crore from Vedanta Limited’s subsidiary ESL Steel Limited over alleged production shortfall. This demand notice has been issued to the company by the office of the Deputy Director of Mines, Koira Circle, Odisha Government.
As per information provided to the exchange, ESL Steel has received a total of two demand notices with a combined amount of ₹12,55,37,61,591. These notices pertain to alleged allegations of non-fulfillment of minimum production and dispatch targets under Rule 12(A) of the Minerals (Other than Atomic and Hydrocarbon Energy Minerals) Concession Rules, 2016.
Case related to BICO and Feegrade mining lease
The government notice alleges that ESL Steel has failed to meet the prescribed minimum production and dispatch targets, leading to the imposition of the huge demand.
ESL Steel called the claims inconsistent
ESL Steel has clarified that it is thoroughly reviewing these demand notices and their associated calculations. The Company believes that the allegations made and the amount demanded are not sustainable on legal and factual grounds.
The company has also said that it will resort to appropriate legal options in this matter. This includes adopting judicial process to stay the demands and quash the notices.
Limited impact on Vedanta shares
Despite this development, there was no significant negative impact on the shares of Vedanta Limited in the stock market. Vedanta shares closed at ₹681.05 with a rise of ₹5.30 or 0.78% in Friday’s trading session.
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