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Supreme Court Issues Contempt Notice to Nalco in Vedanta Decision

Metal News - Published on Mon, 10 Aug 2020

Image Source: Supreme Court Contempt Nalco Vedanta
Financial Express reported that a Supreme Court bench led by Chief Justice SA Bobde sought response from the top Nalco brass as to why contempt should not be initiated against them for clear deviation from the requirement recorded in it January 14 judgment, as alleged by Vedanta. The Supreme Court issued contempt notice to the top brass of National Aluminium Company, including its executive director Marketing RN Mohapatra and CMD Tapan Kumar Chand, on a petition by Vedanta alleging willful disobedience of its January judgment that allowed Vedanta to participate in the state run aluminium producer’s tender for the sale of surplus 30,000 tonnes of metallurgical-grade calcined alumina.

Supreme Court had allowed Vedanta Resources to bid for Nalco’s alumina tenders meant for exports, but said the delivery of consignment would take place at Vishakhapatnam on FOB basis, though the same would be for use in Vedanta’s SEZ unit at Jharsuguda. While Vedanta on June 24 bagged the spot tender for sale of 30,000 tonnes of metallurgical Grade calcined alumina, Nalco, the leading producer of low-cost metallurgical-grade alumina in the world, refused to allow the UK firm to take the consignment to its SEZ unit and insisted on terminating the transaction at the Vishakapatnam Port. Besides, the producer asked VRL to obtain Let Export Order, a mandatory requirement for completion of the transaction, from the Customs authorities at the port, a stand contrary to the SC’s January directions that asked Vedanta to get documentation from SEZ authorities.

Nalco had earlier opposed the participation of Vedanta’s Jharsuguda unit, saying the tender for alumina exports can be issued only to overseas customers and, therefore, Vedanta cannot participate in its tender.

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Posted By : Yogender Pancholi on Mon, 10 Aug 2020
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