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Supreme Court cancels 214 coal block allocation since 1993

by IBNS 24 Sep 2014, 10:45 am

New Delhi, Sep 24 (IBNS): The Supreme Court on Wednesday nullified the allocation of 214 of the 218 coal blocks, leased out to companies illegally by the Centre since 1993.

In a bold judgement, only four blocks' allocation- which are crucial for big power projects and given to companies like SAIL- were not cancelled.  

Thus most of the private firms which were allotted coal blocks by the previous Congress-led United Progressive Alliance (UPA), as well as the NDA, between 1993 and 2011, have lost rights over the mines. 

Reports said the coal firms will also have to pay fine of Rs. 295 per tonne of coal extracted.

The top court on August 25 had held that all coal blocks allocations since 1993 by various regimes at the Centre were illegally and arbitrarily done, sources said.

 A bench headed by Chief Justice RM Lodha had said in its 163-page verdict: “To sum up, the entire allocation of coal block as per recommendations made by the Screening Committee from July 14, 1993 in 36 meetings and the allocation through the government dispensation route suffers from the vice of arbitrariness and legal flaws.”