The district administration in Chhattisgarh's Dantewada has imposed a fine of Rs 1620.49 crore on the National Mineral Development Corporation (NMDC) for alleged violation of mining laws, officials said on Saturday. The mining operation of the central government company NMDC is going on in the Bailadila hills in Kirandul and Bacheli area of ​​Dantewada district of Bastar division.

penalty imposed without consideration

NMDC has termed this move of the district administration as 'completely unfair'. The company claimed that the fine has been imposed without considering the facts and circumstances of the case. Dantewada District Magistrate Mayank Chaturvedi, in a letter written to NMDC on August 29, has directed to deposit the fine amount within 15 days.

Deposit No. 14 ML in an area of ​​322.368 hectares

The letter said that iron ore mining leases have been granted to NMDC for Deposit No. 14 ML over an area of ​​322.368 hectares, Deposit No. 14 NMZ over an area of ​​506.742 hectares and Deposit No. 11 over an area of ​​874.924 hectares in Kirandul village under Bacheli tehsil of Dantewada district. 

Not a satisfactory explanation

It said, "The explanation submitted by NMDC to the show cause notice issued earlier by the district administration was not satisfactory. Therefore, NMDC has violated Rule (4) (1) of the Chhattisgarh Mineral (Mining Transportation and Storage) Rules, 2009."

Penalty imposed based on market value of mineral and royalty

According to the letter, 'For this violation, a total penalty of Rs 16,20,49,52,482.00 is imposed on the basis of market value of the mineral and royalty under Rule (5) of the Chhattisgarh Mineral (Excavation, Transportation and Storage) Rules, 2009 and Section 21 (5) of the Mines and Minerals (Development and Regulation) Act, 1957.'