Supreme Court orders CBI probe against JSW Steel: Reports

May 11, 2012 |

Reuters

mumbai

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The Supreme Court has ordered a probe by the CBI against JSW Steel and two other companies for alleged involvement in illegal iron ore mining in southern state of Karnataka, media reports said on Friday.

Shares in JSW, India's No 3 steelmaker, slid more than 8 per cent after the reports. At 11:56 a.m. (0626 GMT), the stock was down 5.8 per cent at Rs 623, in a Mumbai market that was down 1 per cent.

Earlier, a Supreme Court-appointed panel had recommended the court direct the Central Bureau of Investigation (CBI) to look into linkages between donations made by JSW group firms and alleged receipt of illegal ore by JSW Steel.

"JSW follows the highest corporate governance and we haven't done anything wrong. Our books are open and we will co-operate with the investigating agencies," the company said in a statement to Reuters.

Production at JSW Steel's main 10-million-tonnes a year Vijayanagar plant in Karnataka has been affected since last August after the Supreme Court put an interim ban on mining in the state citing illegalities in some mines.

Japan's JFE Holdings holds a 15 per cent stake in JSW Steel.

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