SC favours Sterlite in Tuticorin case, slaps Rs 100 cr fine

Quashing a Madras high court order, the Supreme Court on Tuesday ruled in favour of Sterlite in a 2010 environmental case wherein the company's Tuticorin plant was charged with vioalitng environmental norms. The apex court has, however, imposed a fine of Rs 100 crore on the company for not adhering to the the prescribed environamental guidelines. 

The order may not have a bearing on the Tamil Nadu Pollution Board order asking the company to shut its Tuticorin plant. On Saturday, Tamil Nadu pollution Board had ordered a closure of Sterlite's Tuticorin copper smelter plant following reports of poisonious gas leakage.
The Sterlite stock rose 4 percent after the verdict. Centrum Broking's Abhisar Jain said although it is a favourable judgement, it is not clear if the order will lead to reopening of the plant.
Meanwhile, Abhisar Jain from Centrum Broking said that the judgement is positive for Sterlite, For one, there was always an uncertainty over the plant shutting down, leaving significant impact on the company. "A penalty of Rs 100 crore  fine will not impact the company in a big way," he said, further adding that the penalty amount will be calculated on an EPS (earning per share) basis less than Rs 0.3 per share and there are 300 crore of Sterlite shares in the market.
However, Jain did not rule out possibility of the SC resuming hearing in this case if there are renewed protests.
Bhavesh Chauhan from Angel Broking adds that though the SC judgement is positive for the stock, the latest pollution control norms in Tamil Nadu is something that the company has to take care of It may take more time for the case to be sorted out completely, he says.