25 August 2014

SC cancels all coal block allocations

Coal block allocation not fair, transparent, says the Supreme Court verdict

Supreme Court on Monday cancelled all coal bloacks allocated since 1993 observing that the allocation done by screening committee was "not fair and transparent". 

While pronouncing its verdict on the issue relating to the cancellation of coal allocation blocks and to de-allocate the blocks which did not have environmental clearance, the apex court noted that no objective criteria was followed and guidelines were breached in allocations. 

The court also said all allocations were done in illegal manner and it suffered from vice of arbitrariness. 

A three-judge Bench headed by Chief justice of India R.M. Lodha while reserving the verdict in January this year had said that 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 had suggested de-allocation of 29 blocks allotted to private companies as well. 

The CBI had 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. 

The Hindu

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