Jindal Steel to go to court over coal mine cancellation - source

NEW DELHI (Reuters) - Jindal Steel and Power Ltd will take the government to court after the coal ministry rejected the company's winning bids for three mines, a company source said on Monday.

Shares in Jindal Steel slumped as much as 14.9 percent, heading towards their biggest daily loss since June 11, 2013. They pared some of the losses later.

Although the winning bids for the mines were the highest in their individual auctions, they were low compared with the winning bids for other similar blocks.

Coal Secretary Anil Swarup could not be reached immediately for comment.

(Reporting by Krishna N. Das; Editing by Gopakumar Warrier)