Chhattisgarh district slaps Rs 1,620 crore fine on NMDC, miner challenges tax

ChhattisgarhThe Dantewada administration has imposed a fine of Rs 1,620.5 crore on the National Mineral Development Corporation (NMDC) for alleged violations of mining laws in the district. NMDCa central public sector unit, called the measure “completely inappropriate,” saying the sanction was imposed “solely and blindly without considering the facts and circumstances of the case.”

The NMDC is carrying out mining activities in Bailadila hills, which encompass Kirandul village under Bacheli tehsil of Dantewada. Dantewada Collector Mayank Chaturvedi directed the NMDC to deposit the fine within 15 days, according to a letter dated August 29, Press Trust of India reported. The collector claimed that the NMDC’s clarifications in response to the show-cause notices issued by the district administration were not satisfactory.

According to the letter, NMDC violated Chhattisgarh mining excavation, transportation and storage rules. NMDC has challenged this penalty. NMDCIn a statement, it said the Dantewada Collector has proposed to impose fine and compensation amounting to Rs 1,620.5 crore for alleged transportation of iron ore without a Railway Transit Pass (RTP), and thereby alleging contravention of various provisions of different mining laws.

“It is respectfully submitted that imposition of compensation and penalty through an impugned notice seeking penalty and compensation only in a blind manner, without taking into account the facts and circumstances of the present case, is wholly inappropriate,” NMDC said.

NMDC added that it has been carrying out its operations under a valid mining lease, with approvals including a mining plan, CTO (consent to operate), CTE (consent to establish) and environmental and forest clearances from the Union Ministry of Environment, Forests and Climate Change (MoEFCC).

It was also highlighted that the state government reviews these documents every six months and has not raised any objection so far, indicating that regulations are being complied with. NMDC further noted that finalisation of grading of iron ore sometimes takes time, resulting in a delay in generation of Rail Transit Pass by two to three days. However, this delay does not cause any financial loss to the state exchequer. “NMDC will send a suitable reply to the district collector,” the company stated.

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