BSE Limited and National Stock Exchange of India Ltd (NSE) have imposed a fine of ₹9,55,800 each on Hindustan Copper Limited for non-compliance with corporate governance requirements. The penalties, communicated via letters dated May 27, 2026, relate to the composition of the Board and the constitution of the Audit Committee and Nomination and Remuneration Committee for the quarter ended March 2026.

The exchanges identified violations under Regulation 17(1) regarding board composition, Regulation 18(1) concerning the audit committee, and Regulation 19(1)/(2) for the nomination and remuneration committee. The total payable amount includes a basic fine of ₹8,10,000 plus GST of ₹1,45,800. Both exchanges have directed the company to pay the fine within 15 days, failing which action may be initiated to freeze the promoter's shareholding.

Non-compliance details

The fines were calculated based on the duration of non-compliance during the specified period. The table below outlines the specific penalties levied by the exchanges:

Company response and impact

Hindustan Copper clarified that as a Government Company, the power to appoint directors is vested with the President of India, acting through the Ministry of Mines. The company has written to the ministry regarding the appointment of the required number of directors, and the matter is currently under consideration. Consequently, the company stated there is no impact on its financial, operational, or other activities.

The company intends to seek a waiver of the fines from both BSE and NSE once the required directors are appointed. The exchanges have noted that compliance is a pre-requisite for processing any waiver application. The notices also require the company to place the matter before its Board in the next meeting and inform the exchanges of the Board's comments.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE531E01026/adbd8a8e77e94d4f.pdf

Hindustan Copper Limited has received a revised demand of Rs.92.166 crore from the Water Resource Department, Ghatshila, Jharkhand, concerning a dispute over water charges. The demand, communicated via a letter dated May 19, 2026, and received on May 27, 2026, estimates the total outstanding amount due for the consumption of natural river stream water from the Subarnrekha river. This development follows the company's request to the department to reassess an earlier demand of Rs.216 crore.

The revised assessment breaks down the total liability into two components. The water charges amount to Rs.46.623 crore, while a penalty of Rs.45.543 crore has been levied. The department calculated the outstanding amount for the period from 2005 to October 2025 at Rs.87.926 crore, based on data provided by the company and applicable departmental water rates. Adding the outstanding amount of Rs.4.247 crore for the period from 2000-01 to 2005 brings the total to Rs.92.166 crore.

Breakdown of Demand

Hindustan Copper Limited stated that the estimated outstanding water tax bill has been provided for confirmation. The company is currently evaluating the calculation made by the Water Resource Department. Additionally, the company plans to request the department to waive the penalty of Rs.45.543 crore.

The disclosure was submitted to the exchanges pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The update pertains to the proceedings titled Hindustan Copper Limited Vs State of Jharkhand & Ors.