Legal gaze over coal auction

As the government readies for the third phase of coal block auctioning, the ministry of coal has had 41 court cases filed against it across the country since the cancellation of blocks in August last year. Companies have challenged not only the bidding methodology but sections in the Coal Mining (Special Provisions) Act. Though 12 cases have been dismissed in the government's favour, any legal pronouncement striking down sections of the new law or rules of auctioning are likely to hit the entire coal re-allocation process.

COMPENSATION TO PRIOR OWNERS

• 9 cases filed by Sova Ispat, GVK Power, Jayaswal Neco, Jindal Power, Jindal Steel & Power, Electrosteel Castings, Mandakini Coal, Utkal Coal Co, Prism Cement
  

 

 

Sections of the coal ordinance have been challenged. The ministry of coal has filed a counter-affidavit citing the same

DECISION TO CHANGE END-USE OF COAL MINE AND/OR AMALGAMATION MINES

• Four cases filed by BLA Power, Jindal Steel & Power, Utkal Coal, DB Power
   
• High court allowed petitioners to participate in the auction. It asked the government to file counter-affidavit. One case dismissed in favour of government

DISQUALIFICATION AT TECHNICAL/FINANCIAL STAGE OF BIDDING

• Nine cases filed by Monnet Ispat, Shyam Mining, Sanvihay Engineering, Goa Industrial Development Corporation, Sarda Energy, Sesa Sterlite, Jayaswal Neco, Bhushan Power & Steel
   
• Four cases dismissed. Judgment reserved for cases where petition came during auction in the others. It is alleged that companies did not abide by auction rules

SALE OF ALREADY MINED COAL BY PRIOR OWNER

• Three cases by Electrosteel Castings, Jayaswal Neco, Sharda Energy
  

 

All cases disposed- either petitioner is withdrawing or has been asked to remove coal stock in stipulated time

DISAPPROVAL OF BID/CANCELLATION OF AUCTION

• Jindal Power (2 cases), BALCO
   
• Cases going on