July 27, 2026 08:19 pm (IST)
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Coal scam: SC scraps 214 illegal coal blocks
New Delhi, Sept 24 (IBNS): In a bold judgement, the Supreme Court on Wednesday cancelled 214 coal block allocations between 1993 and 2008 sparing just four, which are government-run non-joint ventures.
The apex court ruled that these coal blocks were illegally and arbitrarily allocated. It ordered the government to auction them.
The coal blocks which were exempted include Sasan, UMPP, NTPC and SAIL.
The court also granted 46 block holders a period of six months to file a reply.
The Supreme Court has said that the companies will have to pay the loss as compensation owing to the non-operation of the mines.
It accepted CAG's estimate that there was loss of Rs 295 per mega tonne due to the non-operation of the mines.
The Centre had earlier said it favours the cancellation of coal blocks allocations which were declared as illegal by the Supreme Court.
In sum and substance, cancellation of coal block allocation is a natural consequence, the Centre told the Supreme Court.
But it had maintained that the retention of 46 blocks which are in operation or will be operational soon should be considered.
As a matter of fact, on Sept 1, the Centre through Attorney General Mukul Rohatgi told the top court to spare some 46 blocks out of 218 blocks which it termed illegal, since it is needed for power given the critical power situation in the country.
Urging the court to take quick decision on the matter AG also said that the government is open to re-auctioning the coal blocks if their allocations are revoked.
The Centre had pleaded with the court not to cancel allocation without hearing companies who were allocated coal blocks.
The SC on Aug 25 quashed all allocations of coal blocks since 1993 to 2010, delivering a historic judgement on the coal scam after hearing petitions seeking the scrapping of allocations.
The top Court earlier nullified all allocations whether through screening committee or through other means that took place till 2009 terming them as illegal and arbitrary.
It also held that "no State Government or public sector undertakings of the state governments are eligible for mining coal for commercial use".
The top court also suggested to set up a committee headed by a retired Supreme Court judge to examine what should be done for the re-allocation of these coal blocks.
The coal scam had sprung into headlines after the Comptroller and Auditor General's (CAG) report on coal block allocation estimated a loss of Rs 1.86 lakh crore to the national exchequer owing to irregular allocations.
The CAG named 25 private companies as beneficiaries of coal block allocations in various states.
They included companies like Essar Power, Hindalco, Tata Power, Tata Steel and Jindal Steel and Power Ltd.
The allocations date back to the time when Prime Minister Manmohan Singh was holding the portfolio.
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