The Union government has reversed a Rs.200 crore penalty along with several strict measures issued against Adani Ports & SEZ in 2012 for allegedly damaging the environment and violating green laws in connection with the construction of a port project in Mundra in Gujarat, the Business Standard reported.
In a statement, however, the Environment Ministry has said the Adani Port and SEZ Ltd may have to pay a larger fine than the one issued by the UPA government, and said the Rs.200 crore fine “was not backed by any law under the Environment Protection Act and not legally correct.”
If Rs.200 crore fine was not backed by any law, that means the Rs.200 crore penalty ceases to exist at this point of time. Meanwhile, Adani Ports & SEZ has denied all claims of wrongdoing while maintaining that the state government had supported the company.
Therefore, buy the shares of Adani Ports and SEZ Ltd at the CMP of Rs.215, for a short term target of Rs.229.