Adani, NMDC, JSW Steel shares plunge on Lokayukta report

Shares of Adani Enterprises, NMDC, JSW Steel and Sesa Goa went into a tailspin on Friday amid reports that they were among those named in the Karnataka Lokayukta report for unethical practices.

PERSPECTIVE: The ironical political life of BS Yeddyurappa

Adani Enterprises tumbled 20.97 per cent to settle at Rs 586.10 on the Bombay Stock Exchange. During the day, the stock had crashed by 25.84 per cent to a month's low of Rs 550.

JSW Steel closed at Rs 774.20, down 5.49 per cent, while Vedanta Group firm Sesa Goa lost 5.06 per cent to settle at Rs 275.

State-run miner NMDC closed 2.60 per cent down at Rs 240.15.

SC panel finds only 10% mining practices legal, rest illegal

According to media reports, Adani Enterprises has port facilities in Karnataka, which, the report alleges, were used for illegally exporting iron ore. The Lokayukta charged the company for forging permits to transport illegal iron ore. The report recommended cancellation of licences of Adani Enterprises.

NMDC is accused of under-invoicing sales.

JSW Steel is accused of not only paying bribes, but also of colluding with state tourism minister G Janardhan Reddy to buy illegal iron ore. The JSW Group has also been accused of paying money to the Yeddyurappa family members for a land transaction in return for pushing the company's case with the central government for acquiring new licences.

Later in the day, JSW Steel in a regulatory filing to the Bombay Stock Exchange said: "All the transactions have been done in a legally compliant manner and that the company will suitably respond at appropriate time to the authorities concerned as may be required after examining the said Lokayukta report in detail."

No comments could be obtained from Adani Enterprises and NMDC.

The Supreme Court on Friday suspended with immediate effect the mining of iron ore in 10,868 hectares in Bellary district of Karnataka.