Birla Corporation Limited has informed the Exchange about Action(s) taken or orders passed by the Department of Mines & Geology, Chittorgarh Rajasthan, imposing penalty in connection with Mining activities.
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The Department of Mines & Geology, Chittorgarh, Rajasthan has passed an order under Section 4 and 21 of the MMDR Act, 1957 imposing a penalty of ₹4,59,92,229 plus compounding fee of ₹1,00,000 on Birla Corporation. The authorities allege the company carried out mining activities in certain restricted areas that were not in conformity with the conditions of the mining lease. The order was received on 21st April, 2026. Birla Corporation disputes the order, stating the mining operations were carried out in accordance with applicable law, and the company is in the process of filing an appeal or Writ Petition before the Rajasthan High Court.
The penalty of approximately ₹4.6 crore is material but manageable for a company of this size. The reputational risk from a regulatory violation is more concerning. The company's decision to challenge the order in court suggests they expect to either overturn or reduce the penalty.