A community environmental lobby group is considering independent legal action against Adani over claims it provided false or misleading information over its Carmichael coal mine.
Adani Mining says legal proceedings brought against it by the state government is about an administration error.
However, Environmental Defenders Office boss Jo-Anne Bragg says Adani's claims are misleading and the company has committed a serious criminal offence.
"This wasn't an admin error and it wasn't self-reported. Our client, Business Services of Coast and Country, caught Adani red-handed, at best misleading and at worst outright lying to the government," Ms Bragg said.
"If convicted, this issue could potentially affect Adani's ability to operate in Queensland, with the company's suitable operator status likely to be called into question."
The Department of Environment and Science announced on Tuesday it had already started prosecution proceedings against the Indian mining company for allegedly contravening the Environmental Protection Act by providing false or misleading information.
The prosecution relates to information in Adani's 2017/2018 annual return for the mine, and alleges it failed to report a disturbance area of more than 130 hectares.
"The department alleges that Adani's annual return contained false and misleading information about the disturbance already undertaken at the mine during the annual return period," a spokesman for the department said in a statement.
The matter is listed for mention at the Brisbane Magistrates Court on August 16.
The proceedings do not relate to the recent approval of the mine, but carry a maximum penalty of two years' jail or a fine of around $500,000.
Adani says the department's prosecution is over an administrative error which was self-reported in September 2018.
There is no environmental harm and all relevant works "legal and fully complied with our project conditions", an Adani spokeswoman said in a statement.
The company will assess documents related to the prosecution in consultation with the department and participate in relevant legal processes required to resolve the matter, she said.
"Improvements to internal processes were introduced at the time the administrative error was discovered and reported by us to ensure paperwork errors of this nature are avoided in the future."
Adani says disturbance to land on their mining lease caused by permitted activities such as clearing of land for drill pads and access tracks for six groundwater test bores and five groundwater monitoring bores were not included in the return.
The land on which it happened is on a pastoral lease owned by Adani.
Australian Associated Press