Case Study 2: ₹113 Crore Penalty Waiver

Waiving Multi-Crore INR Penalty Due to Systemic Regulatory Failure

At Geomining Data Solutions, we go beyond consultancy. We solve high-stakes problems in the mining industry through a deep understanding of geology, regulation, geospatial technology, and enterprise IT.

Background

Mining leaseholders are legally obligated to file dispatch and sales data online. While portals existed for high-grade iron ore, the government failed to provide a system for low-grade ore reporting. This led to forced misclassification, excessive tax burden, and eventual failure to meet minimum dispatch obligations, resulting in massive penalties.

Challenge

• No portal for low-grade ore dispatch filing.
• Leaseholders had to report all dispatches as high-grade, incurring high taxes.
• Failure to meet dispatch agreements triggered government-imposed penalties.

Our Intervention

We conducted a comprehensive legal and regulatory analysis. The government's failure to comply with its own law was identified. We prepared a legal strategy that challenged the imposed penalty.

Outcome

• Court acknowledged government lapse.
• Penalty of several crores was fully waived.

Impact

• Set a legal precedent for fair digital compliance.
• Protected leaseholders from systemic policy failures.
• Demonstrated our combined strength in mining law, IT systems, and legal documentation.