According to NDTV, the mining department of Satna, Madhya Pradesh, found 40,000 metric tonnes of coal worth Rs. 12 crore stored illegally in Prism’s cement factory during a raid last Friday.
Cement factories require a license to store coal. But Prism Cement, owned by the Raheja group, had not even applied for one.
The mining department, as per rules, fined Prism Cement 10 times the worth of the stored coal at a whopping Rs. 120 crore.
“The cement factory has been found guilty of illegally storing 40,000 metric tonnes of coal whose market value is estimated to be Rs. 12 crore. So we have fined the factory 10 times of its worth which is Rs. 120 crore. The case is now in the District Magistrate’s court,” mining officer SN Pandey was quoted as saying.
It may be recalled that Prashant Jain’s HDFC Mutual Fund has recently bought 1.21 crore shares of Prism Cement.
Prism Cement reported good Q1FY15 results and has been recommended for investment by IndiNivesh Securities with a price target of Rs. 117.