Court says coal block allocations were ad-hoc, casual, without application of mind
Picture used for representational purpose. (Photo: PTI/File)
New Delhi: The Supreme Court’s judgement on Monday that all coal block allocations between 1993 and 2010, the pre-auction era, which comprised both the previous NDA and UPA regimes, were done in an illegal manner kicked off a political storm, with the BJP and the Congress trading charges against each other.
The apex court observed that allocations were made on the basis of an “ad-hoc and casual” approach and “without application of mind”. But, the court said, the consequences arising from its verdict on such coal blocks would be considered after further hearing by it.
The Supreme Court, which examined the allocation of 218 blocks, said, “Common good and public interest have, thus, suffered heavily” as “there was no fair and transparent procedure, all resulting in unfair distribution of the national wealth.”
Today’s verdict came following a marathon hearing on the PILs filed in 2012 by advocate M.L. Sharma and NGO Common Cause, seeking quashing of the coal blocks. A bench headed by Chief Justice R.M. Lodha also held that “no state government or public sector undertaking of the state governments are eligible for mining coal for commercial use.”
Clarifying that since no challenge was laid before the bench for cancellation in respect of blocks where competitive bidding was held for the lowest tariff for power for ultra mega power projects (UMPPs), in accordance with the opinion given in the natural resources allocation reference, the court said, "Having regard to this, it is directed that the coal blocks allocated for UMPP would only be used for UMPP and no diversion of coal for commercial exploitation would be permitted.”
The bench, also comprising Justices Madan B. Lokur and Kurian Joseph, said as allocations made both under the screening committee and the government dispensation routes are arbitrary and illegal, further hearing was needed to determine the consequences for which it would hear the matter on September 1.
After the pronouncement, the bench orally said that though the attorney-general had given the figures of coal blocks, they were not verified and even state governments had raised objections.
These issues have to be gone into, the Supreme Court said, while suggesting that a small committee comprising retired Supreme Court judges can be set up to give its report on the issue in the shortest possible time. Reacting to the development, the Congress sought to blame the BJP as there was an NDA government between 1998 and 2004.
( Source : dc correspondent )
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