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ARTICLE · 21 OCTOBER 2014

Coal Allocations Cancelled!

Nishith Desai Associates
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Supreme Court held that Central Government did not have power to allocate coal blocks in favor private companies.

IndiaEnergy and Natural Resources
M.S. Ananth
M.S. Ananth
Pratibha Jain
Pratibha Jain
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  • Supreme Court held that Central Government did not have power to allocate coal blocks in favor private companies. Even assuming the Central Government did, the allocation by Screening Committee was arbitrary and the improper allocation caused unfair distribution of national wealth. Hence, allocations were to be cancelled.
  • Supreme Court holds that power exercised by Central Government left State Governments to only complete formalities on of allocation of mines. Further, the interpretation placed on the provisions of the relevant provisions would have to be in a manner that reconciled powers of Central and State Government.
  • Supreme Court held that coal blocks allocated to certain Ultra Mega Power Projects in respect of which competitive bidding was carried out may be saved; however, in respect of all other allocations, unless specifically exempted, the allocations were to be cancelled irrespective of th e stage of mining activity carried out.

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