Bhubaneswar: The state government has issued a demand notice of Rs 3,200 crore to five chromite mining lease holders, including Indian Metals & Ferro Alloys Ltd (IMFA) owned by the family members of suspended BJD MP Baijayant 'Jay' Panda, for extracting ore "beyond the approved limits".

Director, mines, Deepak Mohanty told The Telegraph: "The companies have been asked to pay the amount by May 10 this year."

However, he refused to give the break-up of dues that the five companies owe to the state government.

Panda is at loggerheads with the BJD after the party suspended the Kendrapara MP in January last. The latest flashpoint between the two sides happened with the CII deciding to pullout of the Make in Odisha conclave in November.

The BJD has accused Jagi Mangat Panda, the MP's wife and head of CII's eastern region, of being behind the decision.

An official of the mines department said: "Once the deadline for realisation of fines is over, we will explore other options to collect the amounts."

The state government has served demand notices on defaulting miners by invoking Section 21(5) of the Mines and Minerals (Development and Regulation) Act. The government is complying with the Supreme Court order of August 2, 2017, pertaining to illegal mining in Odisha. The court ordered recovery of 100 per cent cost of overproduction by the miners.

A spokespersons for one of the defaulting companies said that demand notices for chromite leases were not legally tenable as a similar case was earlier stayed by the revision authority under the Union mining ministry.