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JP Associates slips as HC slaps Rs 100-cr penalty

The company violated the law and fraudulently set up a cement plant and a thermal power plant.

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SI Reporter
Last Updated : Jan 21 2013 | 4:10 AM IST

Jaiprakash Associates has slipped almost 7% to Rs 66.40 in opening trades on reports that the Himachal Pradesh High Court’s green bench imposed a penalty of Rs 100 crore for violating the law and fraudulently setting up a cement plant and a thermal power plant.

“A division bench of Justices Deepak Gupta and Sanjay Karol passed the landmark judgment May 4 ordering payment of Rs.100 crore as damages for having set up a cement plant by adopting fraudulent means and ordered the company to dismantle the 62 MW captive thermal plants within three months that is being constructed in the same premises” the report suggests.

A combined 350,000 shares have changed hands on the counter on opening deals on both the exchanges.

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First Published: May 07 2012 | 9:23 AM IST

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