New Delhi: The Supreme Court in an historic judgement on Monday quashed all coal block allocations made from 1993. The apex court said the entire coal allocation was illegal and that the court will look into allocating the blocks. It said the approach of the screening committee was very “casualâ€.
The final decision on coal blocks will be taken on September 1.
A three-judge Bench headed by Chief Justice R M Lodha, while reserving the verdict in January this year, said huge investments by companies could not be a ground for not cancelling the licence. When the Centre submitted that 40 coal blocks were de-allocated, the court suggested de-allocation of 29 blocks allotted to private companies as well.
The Centre had taken the stand that having regard to the fact that about Rs 2 lakh crores had been invested by the companies and it would be difficult to cancel the licences for want of clearances. It had made it clear that any amount of investment would not give them right if they had only allocation letters but no clearances and prospective licences.
The States argued that coal blocks allocation was entirely controlled and regulated by the Centre and they were just a subordinate party. They opposed cancellation of coal blocks and said huge money had been invested and cancellation would result in loss. It also argued that court should take into consideration the economic situation of the country before deciding to cancel the allocation and said no one would invest in India if the court strikes down allocation after seven years.
CBI said 195 allocations were probed out of which in 16 cases CBI had found prima facie material which indicated cheating, criminal misconduct and corruption based on which the agency had registered FIRs. However, during the analysis of nearly 60 allocations, records were found to be correct and no deviation from the laid down norms and procedures was detected.
CBI filed 16 FIRs against AMR Iron and Steel, JLD Yavatmal Energy, Vini Iron and Steel Udyog, JAS Infrastructure Capital Pvt. Ltd., Vikash Metals, Grace Industries, Gagan Sponge, Jindal Steel and Power, Rathi Steel and Power Ltd, Jharkhand Ispat, Green Infrastructure, Kamal Sponge, Pushp Steel, Hindalco, BLA Industries, Castron Technologies and Castron Mining. All these FIRs are rooted in three preliminary enquiries related to coal block allocation – between 2006 and 2009, 1993 and 2004, and projects given under the government dispensation scheme.
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