Jharkhand government and the Central government-run Hindustan Copper Ltd.( HCL) appear to be locked in a legal battle. Reason?

The Jharkhand government has issued a demand notice of over ₹929 crore to the HCLfor allegedly producing copper without valid statutory clearances.

HCL, a Mini Ratna Category company under the Ministry of Mines (incorporated 1967), is India’s only vertically integrated copper producer. Headquartered in Kolkata, it operates mines in Khetri, Malanjkhand, and ICC. HCL commands ~45% of India's copper reserves, focusing on mining, beneficiation, and refining.

The demand notice was filed by the office of the District Mining Office (DMO), East Singhbhum, Jamshedpur, under the Department of Mines and Geology, of the Government of Jharkhand.

This move of the Jharkhand government’s department is set to impact the shares of Hindustan Copper on Monday, February 16.

As per available details, the company said, "The demand notice for recovery of compensation amounting to ₹929,40,06,242 has been issued by the DMO, Jamshedpur, alleging production from Surda mine without valid statutory clearances or in excess of permissible limits..."

As per the notice received on February 12, the production happened during 2000-01 to 2016-17, thereby attracting liability under Section 21(5) of the Mines and Minerals (Development & Regulation) Act, 1957, as per the Common Cause judgement issued by the Supreme Court on the matter.

The company has denied the allegations and said it was taking legal action in this regard.

The impact on financials, operations or other activities of the company will be limited to the extent of the final order, Hindustan Copper said. Shares of Hindustan Copper on Friday ended 5.31% lower at ₹591.50 apiece on the NSE.