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Supreme Court quashes all coal blocks allocated since 1993

| | Aug 25, 2014, at 08:09 pm
New Delhi, Aug 25 (IBNS) The Supreme Court on Monday quashed all allocations of coal blocks since 1993, delivering a historic judgement on the coal scam after hearing petitions seeking the scrapping of allocations.

SC lawyer and activist  Prashant Bhushan briefing media said the Court nullified all allocations whether through screening committee or through other means that took place till 2009 terming them as illegal and arbitrary.

"No system was followed. It was all arbitrary and based on favouritism. All allocations were illegal," said Bhushan conveying the court verdict.
 
"Now what will be the consequences of the verdict and on re allocation the court has fixed Sept 1 for decision," said Bhusan, adding that the court found the allocations without transparency.

Chief Justice of India  RM Lodha has examined the allegations of corruption in coal block allocations in various states before passing the judgement.

The Central Bureau of Investigation (CBI) is probing the scam.

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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