Sesa Sterlite Slumps After Supreme Court Order on Goa Mining

Shares in Sesa Sterlite fell as much as 12 per cent to a low of Rs 218.90 after the Supreme Court reiterated a prior ruling that all iron ore mined in Goa before 2007 belonged to the state. The pre-2007 iron ore has to be auctioned, the top court said.

HP Ranina, corporate tax lawyer told NDTV that "Supreme Court is upholding what has already been declared. They are only giving now the implications of their earlier order that this belongs to the government and obviously therefore Sesa and other companies will suffer very serious impacts of this order".

Post the order, stocks in Sesa Sterlite fell sharply but however recovered subsequently.

As of 11.27 a.m. shares in Sesa Sterlite traded 4.94 per cent lower at Rs 237.90, underperforming the Nifty which was down 0.45 per cent.

The Supreme Court in April this year had lifted an 18-month old mining ban in Goa, but with riders. The iron ore mining will be restricted to 20 million tonnes annually, the Supreme Court said adding the cap would subject to a final panel report. (With Agency Inputs)