The Andhra Pradesh High Court has stayed the imposition of penalties worth Rs 1,334 crore against Jaiprakash Power Ventures Ltd. by the Department of Mines and Geology for alleged illegal extraction, storing, transportation and selling of sand.
The high court made decision on the grounds that the action of the DMG was beyond its jurisdiction and overreach of their authority. Jaiprakash Power had filed multiple writ petitions against the state, challenging these penalties, according to exchange filing on Friday.
"Developments pertaining to sand mining contract are being regularly reported by the company in the notes alongwith its quarterly results," it said.
The DMG had issued several demand notices for alleged illegal sand mining and imposed penalties a long time after the expiry of lease period of the sand mines and handing over mining operations to other parties. The mining work was completed and handed over by the company in May 2023, according to Jaiprakash Power.
Jaiprakash Power's consolidated net profit jumped threefold to Rs 182.7 crore in the September quarter of the current financial year from Rs 68.7 crore in the year-ago period. Total income declined to Rs 1,305.2 crore in the second quarter from Rs 1,359.2 crore in the corresponding period of the previous fiscal.
Shares of Jaiprakash Power closed 0.68% higher at Rs 18.84 apiece on the National Stock Exchange before the announcement, compared to a 0.89% advance in the benchmark Nifty. The stock has risen 35.05% on a year-to-date basis.
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