Monday, 30th October 2017

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Hitch in Usha Martin iron ore sale

Usha Martin said it would contest the ED order but maintained that the existing operations would not be affected in any manner

By TT Bureau in Calcutta
  • Published 18.08.19, 1:21 AM
  • Updated 18.08.19, 1:21 AM
  • a min read
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Facility at Usha Martin plant. The mine has now been transferred to Tata Sponge Ltd along with the sale of a steel mill earlier this year for Rs 4,550 crore. Picture: Annul Report

The directorate of enforcement, Patna (ED), has provisionally attached assets worth Rs 190 crore of Usha Martin Ltd in relation to a case pertaining to the sale of iron ore from a captive mine.

The order, passed against the company on August 9 and received by UML on Friday, is in connection with the sale of iron ore extracted from the mines situated at Ghatkuri (West Singhbhum) in Jharkhand. UML sold the ore in the open market even as the mine was allotted to it for captive use.

According to the ED order, Usha Martin would not be able to sell the property for a period of 180 days without the consent of the ED, the company informed the stock exchanges.

Usha Martin said it would contest the ED order but maintained that the existing operations would not be affected in any manner.

According to UML, the Jharkhand high court in Ranchi, in its order on February 14, 2012, had held that the company had the right to sell the iron ore from the mines under the terms of the mining lease.

The mine has now been transferred to Tata Sponge Ltd along with the sale of a steel mill earlier this year for Rs 4,550 crore.

A UML official said the ED case was against the company and the Tatas had nothing to do with it now.

“We are going to deal with it,” the official said.