JP Associates slips 5% post Rs 1bn Himachal Pradesh HC fine
Himachal Pradesh High Court has put a fine of Rs 1 billion on Jaiprakash Associates and ordered not to set up 62 MW CPP, reports CNBC-TV18.
May 07, 2012 / 12:16 PM IST
Infrastructure major Jaiprakash Associates tumbled 5% to Rs 67.20 on last week’s news that the Himachal Pradesh High Court has fined the company Rs 100 crore for violating environmental laws. The court has also cancelled the permission for a 62 MW captive thermal plant which was to be installed by the company and has directed that it be dismantled within three months.
However, the company has said, “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.”
The company further said that said that it has already decided not to go ahead with the captive power plant even before the judgment was pronounced.
The company added that the cement power has provide economic benefits to the region by employing thousands of locals and that even the high court had taken a note of this.