<div>Aditya Birla group flagship firm Hindalco said on Wednesday (11 March) it would defend its case through "legal process" after studying order of the special court, which summoned its Chairman Kumar Mangalam Birla, among others as accused in a coal scam case pertaining to allocation of Talabira-II coal block in Odisha in 2005.<br /><br />"Hindalco reiterates that none of its officials, including its Chairman Kumar Mangalam Birla, have pursued any unlawful or inappropriate means for securing the allocation of the coal block," the company said in a statement.<br /><br />Hindalco Industries fell as much as 5.3 per cent to its lowest since May 5, 2014 after a court summoned billionaire Kumar Mangalam Birla, chairman of Aditya Birla Group to which Hindalco belongs and former Prime Minister Manmohan Singh.<br /><br />The summons were related to the allocation of coal blocks to Hindalco during the previous Congress government, which were later overturned by the supreme court. Hindalco declined to comment.<br /><br />Metal stocks also fell on concerns over the impact of the investigations by the Central Bureau of Investigation. Tata Steel fell 1.1 per cent, while Sesa Sterlite was down 1.7 per cent.<br /><br />Other laggards also include healthcare stocks as investors booked profits in recent outperformers such as Cipla Ltd, which fell 2.1 per cent. As of Tuesday, the stock had gained 16.5 per cent this year. <br /><br />It further said that Hindalco would study the order of the court in detail "and would defend its case through legal process."<br /><br />Stating that the company has "cooperated with investigating authorities completely during the course of investigation since October 2013, the company's management is confident that it will stand vindicated at the end of the ongoing legal process."<br /><br />"The company had represented its case to the concerned authorities in a transparent and lawful manner, following which it was allocated a 15 per cent share in the combined Talabira-II and III coal block in November 2005, in a JV with Mahanadi Coalfields Limited and Neyvili Lignite Corporation, both public sector undertakings with an 85 per cent stake," it said.<br /><br />The coal block was deallocated in 2014.<br /><br />Aditya Aluminium Project, for which this allocation was made, has been implemented by the company at an investment of over Rs 13,000 crore in Odisha.<br /><br />"The plant is already operational even though Talabira-II & III coal block could not become operational for want of clearances. Consequently, Hindalco is having to suffer irrecoverable financial stress," the company said.<br /><br />(Agencies)<br /> </div>
