Shares of Adani Enterprises, JSW Steel, Sesa Goa and NMDC fell on Friday after reports that the Karnataka Lokayukta had named these companies for their alleged involvement in illegal mining of iron ore in the southern state.
It may be recalled that the Lokayukta report inmplicating chief minister B.S. Yeddyurappa has been formally submitted to the state governor.
Reports suggested that the Lokayukta has named 40 companies for illegal iron ore mining. Illegal export of iron ore may have caused losses to the tune of Rs 120bn, according to reports.
Adani Enterprises shares fell sharply after reports said that the Lokayukta has recommended blacklisting the company and banning it from Karnataka.
At 1:45 pm (IST), Adani Enterprises was at Rs 620.95, down Rs 120.70 or 16.3% over the previous close. It had earlier been as low as Rs 550.50.
JSW Steel was down 1.5% at Rs 806.80 after being as low as Rs 802.55. NMDC was down 5.5% at Rs 233.10 after touching a day's low of Rs 224.75. Sesa Goa lost 2.8% at Rs 281.50 after hitting a day's low of Rs 277.50.
Karnataka Lokayukta Santosh Hegde furnished its voluminous report to the state government on
July 27, naming political leaders, companies and officials involved in a mining scam that may have cost the southern state Rs 160bn in lost revenue.
Hegde's report has accused JSW Steel of paying bribes and buying illegally mined iron ore
for its steel plant in the state. State-run NMDC was named for under-invoicing sales, a business newspaper said.
Karnataka has yet to allow shipments of iron ore outside India despite the Supreme Court lifting an eight-month ban on exports.