Vedanta Aluminium faces a penalty of $24.5 million for alleged illegal water extraction
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Vedanta Aluminium has been asked to pay INR 233.11 crore (USD 24.5 million) for alleged unauthorised extraction of water from the Bheden River in Jharsuguda, Odisha. The amount includes outstanding dues along with penalties and interest, and the company has been given one month to clear the payment.
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According to reports citing records from the Burla irrigation division, the company allegedly extracted around 1,03,680 cubic metres of surface water daily between May 1, 2025, and April 29, 2026. No payments were recorded during this period, leading to a steady accumulation of dues.
The total demand includes base water charges, a six-time penalty for delayed payment, and a 2 per cent monthly interest. Officials said the dues, which initially stood at about INR 2.74 crore (USD 289,063) in May 2025, rose sharply over time due to penalties and interest.
In a notice issued by the Burla Irrigation Division, it said, “ A penalty is hereby imposed for the unauthorised extraction of water, and a demand is hereby raised, which must be complied within the stipulated time period of one month. Failing to comply with the above directions shall invite strict legal action as per the Orissa Irrigation Act and Rules 1959 & 1961.”
Officials also said the charges followed findings of unauthorised extraction from Kherwal Nallah, a tributary of the Bheden River, reportedly carried out without proper permission or flow measurement systems.
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The matter has also drawn concern from local residents and environmental groups, who have raised issues about the impact of large-scale water extraction on the river ecosystem and nearby communities.
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