Jaiprakash Associates Ltd (JAL) today said it is studying the implications of the Himachal Pradesh High Court ruling that imposed a penalty of Rs 100 crore on the company for violating environmental laws while setting up a cement plant in Solan district.
The court on Friday had also cancelled the environment clearance for setting up the 25MW thermal plant in the cement plant's vicinity. In a statement, JAL said since the judgement is voluminous, "we are studying the implications thereof, both legal as well as factual and depending upon the legal advice that we receive, we shall decide our future course of action in accordance with the well established constitutional provisions".
"We, however, feel that perhaps our contentions and submissions factual as well as legal could not be put across in proper perspective for which we shall adopt appropriate remedial measures," it noted. Further, the company said that before the judgement, it had decided not to go ahead with the captive thermal power plant at the location of the cement plant.
"... the plant under reference has created employment for thousands of persons and proved to be boon to the region, bringing economic benefits to thousands of families, the statement said. The green bench of the High Court consisting of Justice Deepak Gupta and Justice Sanjay Karol said the JAL "lied" about the cost of the cement plant project and contended it was less than Rs 100 crore to skip the clearance from the Ministry of Environment and Forests whereas the actual cost of the project was more than Rs 417 crore.
Jaiprakash Asso stock price
On November 27, 2015, Jaiprakash Associates closed at Rs 12.72, up Rs 0.13, or 1.03 percent. The 52-week high of the share was Rs 30.40 and the 52-week low was Rs 7.95.
The latest book value of the company is Rs 51.11 per share. At current value, the price-to-book value of the company was 0.25.
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