SC cancels coal block allocations made between 1993 and 2009

The Supreme Court (SC) today held that the coal block allocations made by the central government between the years 1993 and 2009 have been cancelled. The court said these allocations were made in a non-transparent and arbitrary manner.

The apex court today said that no objective criteria were followed and the guidelines were breached in coal block allocations.

Speaking on coal allocation issue lawyer Prashant Bhushan said, "The supreme court in a historic judgement related to the allocation of the coal blocks by the central government between 1993 and 2009 has declared that all the allocations made by the central government weather through the screening committee route or through the government allocation route to the public sector undertakings were all done in a non transparent manner and therefore all those allocations have been declared illegal and have been cancelled."

The court has scheduled a hearing on the first of September to decide on those allocations where the mining work has already begun.

The union minister Piyush Goyal has welcomed the decision on coal block allocations and said that it is in the country's favour.

Meanwhile, Congress Party leader Manish Tewari said, "The honourable Supreme Court as I am informed has held that from 1993 till 2009 which was the period covered by the CAG report, there was an element of arbitrariness, obviously we would study the order, and we would come back with a response. And equally we would expect the government to come back with a response."

It may be mentioned that a CAG report on coal block allocation had stated that nearly 150 coalfields were allotted to private and state-run firms without transparency and objectivity between 2005 and 2009.

The coal blocks were alloted in Jharkhand, Chattisgarh, Maharashtra, West Bengal, Odisha and Madhya Pradesh to private companies and parties.

The Bench headed by Chief Justice R.M. Lodha, had said in January this year, huge investments by companies could not be a ground for not cancelling the license.

After the centre de-allocated 40 coal blocks, the court had further suggested de-allocation of 29 blocks allotted to private companies as well.