Birla Corporation Faces Penalty of ₹4.6 Cr Over Alleged Non-Compliant Mining Activities in Rajasthan
Birla Corporation Ltd. has received an order from the Department of Mines & Geology, Chittorgarh, Rajasthan, imposing a significant penalty and compounding fee related to its mining operations. The order details allegations that the company conducted mining activities in areas restricted for such purposes, claiming the actions did not comply with the established mining lease conditions.The Department of Mines & Geology passed the order under Section 4 and 21 of the MMDR Act, 1957. The Company received the direction on April 21, 2026.
According to the order, the core allegation involves the company carrying out mining in certain areas designated as restricted for mining, which was found to be non-compliant with the terms of the mining lease.
The order imposes a specific financial penalty and compounding fee:
| Detail | Amount |
|---|---|
| Penalty Imposed | ₹ 4,59,92,229/- |
| Compounding Fee | ₹ 1,00,000/- |
| Total Quantifiable Impact | ₹ 4,60,92,229/- |
In response to the order, Birla Corporation stated that it believes the order is not maintainable. The company asserted that the mining operations were carried out strictly in accordance with applicable law and could not be construed as illegal. Birla Corporation indicated that it is currently in the process of filing an appeal or a Writ Petition before the Hon'ble Rajasthan High Court.
BIRLACORPN Stock Price Movement
As of 2:59 PM, shares of Birla Corporation Limited are slipping by 0.64% in live trading, currently testing at ₹950.75. The equity has seen a total of 28,779 shares traded in the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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