India Court Orders Federal Probe Against JSW Steel-reports-Shanghai Metals Market

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India Court Orders Federal Probe Against JSW Steel-reports

Industry News 10:44:19AM May 14, 2012 Source:SMM

May 11 (Reuters) - India's top court has ordered a probe by the federal police agency against JSW Steel and two other companies for alleged involvement in illegal iron ore mining in southern state of Karnataka, media reports said on Friday.

Shares in JSW, India's No 3 steelmaker, slid more than 8 percent after the reports. At 11:56 a.m. (0626 GMT), the stock was down 5.8 percent at 623 rupees, in a Mumbai market that was down 1 percent.

Earlier, a Supreme Court-appointed panel had recommended the court direct the Central Bureau of Investigation (CBI) to look into linkages between donations made by JSW group firms and alleged receipt of illegal ore by JSW Steel.

"JSW follows the highest corportate governance and we haven't done anything wrong. Our books are open and we will co-operate with the investigating agencies," the company said in a statement to Reuters.

Production at JSW Steel's main 10-million-tonnes a year Vijayanagar plant in Karnataka has been affected since last August after the Supreme Court put an interim ban on mining in the state citing illegalities in some mines.

Japan's JFE Holdings holds a 15 percent stake in JSW Steel.


 

India Court Orders Federal Probe Against JSW Steel-reports

Industry News 10:44:19AM May 14, 2012 Source:SMM

May 11 (Reuters) - India's top court has ordered a probe by the federal police agency against JSW Steel and two other companies for alleged involvement in illegal iron ore mining in southern state of Karnataka, media reports said on Friday.

Shares in JSW, India's No 3 steelmaker, slid more than 8 percent after the reports. At 11:56 a.m. (0626 GMT), the stock was down 5.8 percent at 623 rupees, in a Mumbai market that was down 1 percent.

Earlier, a Supreme Court-appointed panel had recommended the court direct the Central Bureau of Investigation (CBI) to look into linkages between donations made by JSW group firms and alleged receipt of illegal ore by JSW Steel.

"JSW follows the highest corportate governance and we haven't done anything wrong. Our books are open and we will co-operate with the investigating agencies," the company said in a statement to Reuters.

Production at JSW Steel's main 10-million-tonnes a year Vijayanagar plant in Karnataka has been affected since last August after the Supreme Court put an interim ban on mining in the state citing illegalities in some mines.

Japan's JFE Holdings holds a 15 percent stake in JSW Steel.