Supreme Court reserves order on coal block allocation
Moneylife Digital Team 09 September 2014

After a day-long hearing on the consequences of its earlier decision, the Supreme Court reserved its verdict in the coal block allocation case

 

The Supreme Court on Tuesday reserved its order in the coal block allocation case. However, it has not announced a date for when it will declare its judgement in the case.

 

The bench headed by Chief Justice RM Lodha reserved the verdict after a day-long hearing on the consequences of its earlier decision, holding that the process of the allocation of these coal mines by the steering committee and under government dispensation was arbitrary and illegal.

 

Earlier, the union government told the Court that it favoured auction of all the 218 blocks, but if the Court so considered, then 40 coal blocks, which are already in production for years and six other coal blocks in which production can commence any time, may be exempted.

 

Yesterday, the government left it to the Supreme Court to decide the fate of 218 coal block allocations held as illegal by it while stating that about 40 blocks are operational and another six are ready to produce 50 million tonnes coal in the current year.

 

"In sum and substance, cancellation of coal block allocation is a natural consequence," the government had told the apex court.

 

The government though reiterated its stand that licences of 46 coal blocks which are in operation or to start operations soon should be retained.

 

The Centre in its arguments also said that the 40 blocks, which are operational be either allowed to operate till auctions conclude or the court could give these blocks to Coal India till the conclusion of the auction, according to media reports.

 

Meanwhile, companies, who were allocated coal blocks, also pleaded with the SC not to cancel allocations without hearing them.

 

The Supreme Court had on 25th August declared that the entire allocation of coal blocks from 1993 till 2010 was illegal, arbitrary, non-transparent and without application of mind and guidelines.

Comments
VincentAndrews
1 decade ago
When the Govt only allocated a block why the allocated companies to bear the penalty or new revised cost if any if it is only used for the eligible end use projects. Since coal is an important thing for the country...any legal issues to be avoided without delay.
Ravindra
1 decade ago
The Government stand is very sensible. Shutting out the coal blocks which are already in Production for years and which are very close to Production show that these operators are the Genuine coal producers whether for own Consumption or for the Market. Cancelling their licenses is akin to action with retrospective effect. The others who did not take any substantive steps were probably waiting to sell the Licence. The licenses given by the Government must always be for self use and not for sell. If the alottee does not want to produce, the only way out MUST BE RETURN OF THE ALOTTMENT.
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