Surat: AM/NS receives another penalty notice for ‘encroachment’, asked to pay Rs 88 crore this time
This came a few weeks after the company, in January 2025, received a penalty notice of Rs 18 crore over alleged encroachment on government land.
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The company authorities have been asked to pay the amount within 90 days (Reuters)Surat district administration officials have slapped a penalty notice of Rs 88 crore to ArcelorMittal Nippon Steel India (AM/NS) for allegedly carrying out encroachment by setting up township and machinery plants on government land for the past 34 years, officials said. The company authorities have been asked to pay the amount within 90 days.
This came a few weeks after the company, in January 2025, received a penalty notice of Rs 18 crore over alleged encroachment on government land.
Acting on the instructions from Surat district collector Dr Sourabh Pardhi, Choryasi Mamlatdar Nirav Paritosh, along with his teams, carried out a survey on the AM/NS company premises at Hazira earlier this year. On January 28, they issued a penalty notice of Rs 18 crore to AM/NS India for alleged encroachment on 80,000 square meters on government land. The district administration had given it a deadline of 120 days to pay the penalty.
Later, officials said they found further encroachment on government land by the company following which it was issued a penalty notice of Rs 88 crore.
Mamlatdar Paritosh said, “…In total, the company has to pay Rs 106 crore in 90 days for encroachment on government land measuring 6.30 lakh square meters, which has been done since 1990. The company has to pay the penalty amount, remove the encroachment and hand over the land to the government. After paying the penalty amount, if the company wishes to purchase the land, it will have to talk to top officials of the state revenue department.”
The Mamlatdar further said that the 90-day deadline includes 60 days of appeal period.
AM/NS India spokesperson said, “Upon acquiring Essar Steel assets in December 2019 under the Insolvency & Bankruptcy Code 2016 (‘IBC’), including land parcels in Hazira, AM/NS India undertook comprehensive due diligence. This revealed certain land parcels subject to disputes dating back over three decades, predating AM/NS India’s acquisition.”
The spokesperson further said, “Under the provisions of IBC and as confirmed by the Supreme Court in various matters, the incumbent company is not liable for any past unpaid dues or violations. In this background… AM/NS India initiated engagement with the Gujarat government to commence the regularisation process for such land parcels. The current communication from local authorities is a part of this process and we are addressing this matter in terms of applicable legal position.”
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