MP Birla Received Order from Mining Authority; Penalty of Rs 4.60 Crore Imposed:

MP Birla Group informed NSE and BSE that it received an order imposing penalty for alleged non-compliant mining activities in Chittorgarh and decided to challenge it legally.

Rajasthan Mining Authority Issues Penalty Order to MP Birla

Kashish Bhardwaj

Apr 23, 2026

Last update on Apr 23, 2026

MP Birla Received Order from Mining Authority; Penalty of Rs 4.60 Crore Imposed MP Birla Group has informed both NSE and BSE that it has received an order from the Mining Engineer of the Department of Mines & Geology, Chittorgarh, Rajasthan. The order relates to a financial penalty imposed over alleged non-compliance in certain mining operations. The company, however, does not agree with the findings and intends to challenge the order. The matter relates to mining work carried out in specific areas of Chittorgarh. According to the department, some of these activities took place in locations where mining was either restricted or not fully in line with the conditions of the mining lease. Based on this view, action was taken under the provisions of the MMDR Act 1957. The company believes the order is not justified and is in the process of taking legal action. It plans to file a writ petition before the Rajasthan High Court, and the final outcome will depend on the court’s decision. The total amount involved is around Rs 4.60 crore. The amount involved at this stage is being treated as the company’s financial exposure. However, as the matter is still under dispute, the final liability will only be known once the legal proceedings are concluded. There could also be some additional costs, mainly related to legal proceedings and internal assessments. This has been done using the powers given under Regulation 30 of SEBI (LODR) Regulations, 2015 and has been duly informed of the stock exchanges. Key Details of Order

Particulars	Details
Authority	Mining Engineer, Department of Mines & Geology, Chittorgarh, Rajasthan
Law Applied	Sections 4 and 21 of the MMDR Act, 1957
Nature of Order	Penalty imposed along with a compounding fee
Allegation	Mining carried out in restricted areas not as per the lease terms
Penalty Amount	Rs 4,59,22,229
Compounding Fee	Rs 1,00,000
Total Financial Exposure	Rs 4,60,22,229
Date of Receipt	April 21st, 2026
Basis of Action	Alleged violation of mining lease conditions