Hindalco, JSPL tank as Supreme Court rules coal allocation post 1992 illegal

MUMBAI: In a major setback to Hindalco, JSPL and power sector in general, the Supreme Court has ruled that all coal block allocations post 1992 as illegal.

The Court’s judgement is on petition against alleged irregularities in the allotment of coal blocks to private parties during UPA and NDA regimes from 2001 till 2009.

The apex court observed that allocation of coal blocks done under screening committee rule was irregular.

No proper procedure for allocation was followed since 1992, the court said.

The SC has said further hearing is required to determine whether there is a need for cancelling 218 coal block allocations.

It will hear arguments on September 1 on cancelling of coal block licences.

According to CBI lawyer, SC will look into coal block allocation in greater detail and decide whether it will de-allocate illegal coal blocks.

The Court is aware of the impact of cancelling blocks on economy, the lawyer said.

The apex court has deemed allocations to PSU & Private companies illegal

Hindalco tanked 7.3 per cent to touch intraday low of Rs 168.65 and JSPL plunged 9.6 per cent to touch intraday low of Rs 266.