Patel Engineering faces Rs 14 lakh penalty for operating without licence in Sikkim

Business Desk — Tue, 26 May 2026 13:12:52 +0000

Patel Engineering has been penalised by the Forest and Environment Department in Namthang, South Sikkim, for operating a stone crusher plant without the necessary operational licence. The penalty amounts to ₹14 lakh and covers the fiscal years 2022-23, 2023-24, and 2025-26.

The company, which is executing the TEESTA STAGE-VI Hydro Electric Project with a capacity of 500 MW, valued at ₹1,251 crore, was found to be operating a 200 THP capacity stone crusher plant at Thalthaley Pamphok, Sikkim, without the required licence. The project was awarded by NHPC in 2021.

Patel Engineering had obtained all other necessary permissions, including the “Consent to Operate” from the Forest and Environment Department. However, the company claims that there was no mention or intimation of the need for a “Mandatory Operational License” during the issuance of the consent.

The department’s letter dated 25 May 2026, communicated the penalty, which Patel Engineering has agreed to pay. The company also plans to secure the required licence fees and comply with the department’s instructions.

Despite the penalty, Patel Engineering reports that there is no material financial impact on its operations and that activities at the project site continue as usual.

Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).

Forest and Environment Department | Business Upturn

Patel Engineering faces Rs 14 lakh penalty for operating without licence in Sikkim