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In a set back to leading cement maker UltraTech Cement, the Mines Department of Rajasthan Government on Tuesday retook the possession of 10 square kilometres of limestone mining area in Nagaur district from the Aditya Vikram Birla Group company which had allegedly “illegally” bought it from a private firm.
Reports from Jaipur said that UltraTech had bought the mine at Gotan in Nagaur district from Gotan Limestone Khanij Udyog Pvt Ltd, owned by a Chauhan family.
On August 9 this year, the Anti-Corruption Bureau of Rajasthan had filed an FIR against four directors of the family-run firm and three directors of UltraTech, namely Kailash Chandra Birla, Rahul Mohnot and Mukesh Babu Aggarwal and the then Director of Mines and Geology, Udaipur, besides others. A case had been registered against them under Section 13 (1-D), 13 (2), Prevention of Corruption Act, 1998, and Sections 420 and 120B of the Indian Penal Code, according to sources.
Interestingly, in 1997, the Chauhan brothers’ erstwhile company Gotan Limestone Khanij Udyog Ltd, had sold 2 sq km out of the same 10 sq km mine area to JK Cement. While this part transfer application was still pending with the Mines Department for approval, they sold the entire 10 sq km to UltraTech Cement in 2012.
On July 23, 2012, they inducted the three new directors from UltraTech Cement in their newly formed company Gotan Limestone Khanij Udyog Pvt Ltd (GKUPL). The same day, the Chauhan brothers resigned from the directorship of their own company by selling 100 per cent shareholding to the AV Birla Group firm for Rs 160 crore.
The same day (July 23, 2012), again, UltraTech Cement informed the Bombay Stock Exchange (BSE) that it had acquired 100 per cent equity shares of GKUPL. The market value of these limestone mines was estimated to be about Rs 1,000 crore.
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