New Delhi: Heavy penalty has been imposed on Anil Aggarwal‘s Vedanta Limited. Tax penalty of Rs 92.04 crore and additional penalty of Rs 10 crore has been imposed on the company. Besides, custom duty and interest on it will also have to be paid. Anil Aggarwal’s company informed this to the stock market on Wednesday. This fine has been imposed at a time when Anil Aggarwal had recently targeted the government. The veteran businessman had alleged that India’s iron ore industry is dying. This is due to high auction premiums, limited blocks on offer and slow operations of the mines. The government had called it completely misleading and wrong. The penalty action against Vedanta was due to violation of pre-import conditions. These conditions were applicable for a limited period on imports made under advance authorisation.
What information did Vedanta give to the stock market?
Vedanta said in the information given to the stock market, ‘The company has received an order from the office of the Custom Commissioner of Tuticorin. In this, a fine of Rs 92,03,85,745 and an additional penalty of Rs 10,00,00,000 has been imposed. Besides, custom duty and interest on it has also been demanded. This demand pertains to violation of the pre-import condition applicable to imports under advance authorization which was applicable for a limited period.
What will the company do next against this action?
Vedanta has said that it is reviewing the order. Further action will be decided at the appropriate time. The company said, ‘The company believes that it has strong legal grounds, especially in view of recent judicial decisions. Further action will be decided in due course. The company does not believe that this order will have any significant impact on the financial position, operations or other activities of the company.
This development further adds to the regulatory challenges facing Vedanta. The company has been facing various legal and operational hurdles in recent years.
Vedanta Limited is a global natural resources company engaged in exploration, extraction and processing of minerals and metals. The company plays a vital role in the mining and metals industry with its strong presence in India and many other countries.