The Company has received Demand Notice from Department of Mines and Geology Government of Andhra Pradesh.
POKARNA · price
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Pokarna Ltd has received a demand notice from the District Mines and Geology Officer in Tirupati, Andhra Pradesh. The authorities have alleged misuse of dispatch permits for colour granite within the leased area and unlawful excavation/transportation of colour granite from outside the leased area. A total demand of Rs. 33,39,58,289 has been raised, comprising a normal seigniorage fee of Rs. 4.67 crore, a penalty of Rs. 27.96 crore, DMF of Rs. 58.32 lakh, and other charges. The company states it believes the demand is not maintainable and is in the process of preferring an appeal against the notice.
The company claims no immediate impact on financials or operations as it plans to contest the demand legally. However, the large penalty amount of nearly Rs. 28 crore could pose a risk if the appeal is unsuccessful.