SC fines the Centre Rs1 lakh for its callous behavior

18 Aug 2022 , 10:51 AM

For its "callous, inconsiderate, and casual conduct" that resulted in the cancellation of a coal block that had been legitimately granted to the private company BLA Industries in Madhya Pradesh in 1997, the Centre was fined Rs1 lakh by the Supreme Court on Wednesday.

By declaring that "Any such demand raised by the respondent No. 1 - UOI is thus quashed and set aside," the top court further found that the Union Coal Ministry was not authorized to request payment of an additional levy for the coal extracted by the private company from the mine.

The sequence of events in the case involving BLA Industries was discussed by a bench made up of Chief Justice N V Ramana, Justices Krishna Murari, and Hima Kohli. BLA Industries had adhered to the law when securing "Gotitoria (East & West) Coal Blocks" in the Mohapani Coalfield in Madhya Pradesh to satisfy the captive power plant's coal needs.

"We are forced to draw certain conclusions about respondent No. 1 - UOI's actions. In this instance, a private person invested significant funds to start a firm while adhering to all regulations and applicable laws.

In fact, it appears from the case's circumstances that respondent No. 1 - UOI was the one who didn't adhere to the text of the law, the statement read.

The highest court ruled that the private party was responsible for bearing the costs of the Center's "careless and callous approach," which resulted in the cancellation of the coal block as a result of a 2014 decision on a PIL.

It instructed the Centre to pay the private firm's lawsuit fees in the amount of Rs1 lakh within four weeks.

In November 1994, a private company requested permission from the Narsinghpur District District Collector in Madhya Pradesh to mine coal on forest territory.

The private company received approval from the federal government in 1997 for the granting of the mining lease.