Rajasthan cement firms to pay 24% interest as royalty, India

Rajasthan cement firms to pay 24% interest as royalty, India
Published: 15 July 2011

The Supreme Court has directed the six cement producers of Rajasthan to pay 24% interest to the state government as royalty due on lime stone from 1996 onwards.

The cement producers are: JK Synthetic, Birla Corporation , JK Udaipur Udyog , JK Corporation and Shree Cement .

A three-member bench of headed by justice R V Raveendran partly allowed the plea of the state government, challenging orders of the Rajasthan high court which had set aside its direction and fixed 12% as interest rate.

"From February 17, 1992 to the date of dismissal (1996) of the respective writ petition (challenging the notification dated 17.2.1992), the rate of interest shall be 18% per annum on the arrears of royalty and from the date of dismissal of the writ petition till date of payment the rate of interest shall be 24% per annum," the bench said.