Jindal Steel has rubbished the Supreme Court-appointed Central Empowered Committee's report alleging that the company carried out excess extraction of over 22 lakh MT iron ore in violation of the law from the Tantra-Raikela-Bandhal mines in Odisha.
Questioning the findings, Jindal Steel told the Supreme Court that the CEC report was "erroneous, fallacious and was prepared without application of mind".
"CEC report is without any basis, bereft of any cogent and sound appreciation of the facts and contrary to the provisions of the law governing the field. It is further submitted that CEC report suffers from abject and complete non-application of mind," an affidavit filed by the company said.
Jindal Steel has been operating the Tantra-Raikela-Bandhal mines since 1993-94.
The CEC report to the Supreme Court said Jindal Steel was indulging in excess extraction of ore in contravention of law and recommended that the company should pay Rs 13,781 lakh for the extra production. The CEC recommended recovery of 30% of the value of excess ore mined by the company.
Challenging the CEC's recommendation, the company said it could not be asked to pay the amount so long as it extracted minerals from within its leasehold area and had transported the mineral after due payment of royalty.
"It is therefore prayed that CEC report deserves to be rejected by this court being contrary to records and provisions of the MMDR Act and rules framed thereunder," the affidavit said.
"It is submitted that CEC failed to consider its submission and has mechanically and without application of mind come to the finding that it had carried out excess production which is thoroughly misconceived," it said.
"CEC had arbitrarily recommended the recovery of 30% of the notional value of the iron ore allegedly produced in excess which is without basis. The said finding and recommendation is fallacious and erroneous," the affidavit said.