Shillong: A High Court appointed committee is challenging Star Cement over the origin of nearly 3 lakh metric tonnes of coal transported through Jaintia Hills. The investigation centers on 2,93,569 metric tonnes of coal that lack the necessary paperwork, including transit passes and origin certificates required to prove the material came from outside Meghalaya.
The controversy follows a March 2026 truck accident that exposed unauthorized transportation practices by the firm. Officials now suspect a laundering scheme where locally extracted coal, banned in the state since 2014, is being misrepresented as imported fuel to bypass regulatory controls.
The Mining and Geology Department and the Director of Mineral Resources have issued a show cause notice to the company. Authorities have warned that failure to provide proof of legality within 15 days could lead to the seizure of the coal and the suspension of operating licenses. The committee noted that the company failed to produce a mandatory paper trail, including weighbridge slips, origin certificates, and transit passes required to prove the coal came from outside the state.
The state government is also pursuing unpaid royalties, GST, and environmental restoration fund contributions that were allegedly bypassed during these transactions. If Star Cement fails to provide the required documentation, the committee has recommended heavy penalties and a potential total shutdown of the company's manufacturing operations.
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