Jaiprakash Power Ventures shares: JP Power stock in focus today; here's why

Shares of Jaiprakash Power Ventures Ltd (JP Power) are in focus on Monday morning after the Andhra Pradesh High Court, in a clutch of writ petitions filed by the company against the state -- challenging the imposition of penalties by the Department of Mines & Geology Offices (DMG) -- stayed such demands vide several orders, last being 5th December, 2024. This was on the grounds that the action of the DMG was beyond its jurisdiction and or over-reach of its authority.

The penalties aggregated to approximately Rs 1,334 crore and were related to various demand notices relating to alleged illegal extraction, storing transportation and selling of sand. JP Power said the developments pertained to sand mining contract are being regularly reported by it in the notes, along with its quarterly results.

JP Power shares are up 13.13 per cent in the past one month and 33.74 per cent year-to-date. It settled at Rs 18.79 on Friday, up 0.43 per cent.

"It is pertinent to state that after considerable lapse of time from the expiry of lease period of sand mines and after completion and handing over of operations of the mining jobs by the Company and further allocation of mining job to other party(ies) on the same mining reaches, the Department of Mines & Geology, Government of Andhra Pradesh, through District Offices issued several demand notices, as referred to above, on the alleged illegal excavation of sand mining and imposition of penalty(ies)," JP Power said.

The said mining work was completed and handed over by the company way back in May 2023, it JP Power noted.

"As already disclosed while disseminating quarterly financials for the quarter/half year ended 30th September, 2024 on 26th October, 2024, it was stated that several demand notices were received & penalties imposed by various officers of the Authorities mentioned in (i) above, in respect of alleged illegal extraction, storing, transportation and selling of sand in the State of Andhra Pradesh. The aggregate . amount of demands/penalty(ies) works out to around RS.1334 crores," it said.