Shree Cement Faces ₹68.56 Lakh Penalty for 2013 Compliance Lapses

Shree Cement Limited announced on March 24, 2026, that it has received a demand order imposing a penalty of ₹68.56 lakh from the Superintending Mining Engineer, Office of the Mining Engineer, Department of Mines & Geology, Ajmer Circle, Rajasthan. This penalty is linked to delayed compliance issues identified during an inspection in 2013 at the company's Sheopura Kesarpura Mines in Rajasthan.

The company has publicly stated that the order has no major financial impact and plans to pursue suitable legal actions to challenge the findings.

While the ₹68.56 lakh penalty itself is not substantial for a company of Shree Cement's size, the order highlights continued regulatory scrutiny over historical compliance. The company's stance suggests they believe the financial implications are manageable, but their decision to challenge the order indicates a dispute with the mining department's assessment.

This event occurs against a backdrop of other recent regulatory actions faced by Shree Cement. In January 2026, the company disclosed receiving GST demand orders totaling ₹70.29 lakh related to alleged Input Tax Credit violations. Previously, in January 2024, it was fined ₹481 million (US$481m) by the Income Tax Department for alleged fraudulent tax claims. The Competition Commission of India (CCI) also imposed a significant penalty of ₹397.51 crore on Shree Cement for anti-competitive practices. Additionally, mid-2023 reports indicated a ₹23,000 crore tax evasion probe following IT raids, which the company characterized as a survey for information gathering.

Shree Cement intends to proceed with legal challenges to contest the mining department's demand order, while maintaining that no significant financial or operational disruption is expected from this particular penalty. The company's recent regulatory history, marked by substantial penalties from bodies like the CCI and the Income Tax Department, underscores a pattern of heightened compliance oversight.