Sandur Manganese & Iron Ores Limited has informed stock exchanges about an unfavorable court ruling regarding compensatory afforestation charges. The Karnataka High Court dismissed the company's writ petition challenging a ₹131.25 crore demand from the state forest department.

Court Order Details

The Karnataka High Court issued its order on 30 April 2026, dismissing the writ petition filed by Sandur Manganese. The petition sought to set aside a communication from the Deputy Conservator of Forests (DCF) of Karnataka state, which had demanded substantial compensatory afforestation charges.

Forest Department Demands

The Deputy Conservator of Forests' communication dated 20 June 2025 made two specific demands on the company:

• Payment of compensatory afforestation charges amounting to ₹131.25 crore
• Provision of land for compensatory afforestation purposes

These demands relate to the company's mining operations and the environmental compensation required under forest clearance regulations.

Company's Response and Operations

Despite the court's dismissal of its petition, Sandur Manganese has indicated its intention to continue business operations. The company emphasized that it holds valid mining leases and forest clearances, which provide the legal foundation for its ongoing activities.

The management stated it will take steps to resolve the issues pertaining to both the demand for compensatory afforestation charges and the requirement to provide land for afforestation purposes. This suggests the company may explore alternative legal or administrative remedies.

Regulatory Compliance and Communication

The company disclosed this development under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The official communication was signed by Company Secretary & Compliance Officer Neha Thomas and sent to both BSE Limited and National Stock Exchange of India Limited.

Previous Legal Developments

The current order follows an earlier favorable judgment for the company. On 29 April 2025, the Karnataka High Court had confirmed the validity of Sandur Manganese's forest clearances, providing legal backing for the company's operations. The company had previously communicated this positive development to stock exchanges through letter SMIORE / SEC / 2025-26 / 3 dated 7 May 2025.

Sandur Manganese & Iron Ores Limited has announced the closure of its wholly owned subsidiary Sandur Pellets Private Limited through voluntary liquidation, following approval from the National Company Law Tribunal.

NCLT Approves Voluntary Liquidation

The National Company Law Tribunal, Bengaluru Bench passed an order on 29 April 2026 approving the voluntary liquidation of Sandur Pellets Private Limited (SPPL). The order was uploaded on 1 May 2026, formally dissolving the wholly owned subsidiary under the applicable provisions of the Insolvency and Bankruptcy Code, 2016.

Subsidiary Background and Operations

Sandur Pellets Private Limited was incorporated on 7 May 2022 with comprehensive business objectives outlined in its Memorandum of Association. The subsidiary's intended operations included:

• Production and beneficiation of metals
• Pelletization processes
• Manufacturing activities
• Trading and marketing of ferrous and non-ferrous metals
• Marketing of metal by-products

Despite these broad operational objectives, SPPL had not engaged in any business operations since its incorporation and had not generated any operating revenues throughout its existence.

Financial Impact Assessment

The closure of SPPL is expected to have minimal impact on the parent company's financial performance. According to the disclosure, the subsidiary's contribution to turnover, revenue, income, and net worth of Sandur Manganese & Iron Ores Limited during the last financial year was negligible.

Regulatory Compliance

The voluntary liquidation process was conducted in accordance with the Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017. The company has fulfilled its disclosure obligations under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The dissolution represents a strategic decision to close a non-operational subsidiary that had remained dormant since incorporation, allowing the parent company to streamline its corporate structure and focus resources on active business operations.