"Acting on a tip-off, mining officials recently inspected the premises of the company and seized the stocked coal," a mining officer said.
The company had not obtained the licence to store coal which is mandatory, the officer added.
As per the Madhya Pradesh Awaidh Khanan Bhandaran Nivaran Act, 2006, the mining authorities imposed a penalty of Rs 120 crore (which is ten times the actual market value of the seized coal) on the company and submitted the matter for hearing in the District Collector's court, the official said.
Efforts to contact the company officials on the issue proved futile.