Thursday, Nov 27, 2014

Compat stays Rs 1,773 crore penalty on Coal India

ENS Economic Bureau | New Delhi | Posted: February 27, 2014 2:10 am

The Competition Appellate Tribunal (Compat) has put a stay on the Rs 1,773-crore penalty levied on Coal India Limited (CIL) by the competition watchdog, subject to the condition that the miner deposits a token penalty of Rs 50 crore within three weeks.

The Competition Commission of India (CCI) had imposed the fine on CIL, the first major penalty by the regulator on a state-owned entity, for allegedly abusing its dominant position in fuel supplies.

The Compat has also directed CIL to file an affidavit stating the changes and amendments incorporated by the company in the fuel supply agreements (FSAs) pertaining to the collection and testing of coal samples.

The miner has also been directed to state changes in respect of other clauses in the FSAs — such as revision and termination of agreements, aspects on force majeure and transportation charges levied on buyers — in its affidavit before the competition tribunal. For now, the Compat has posted the matter for further hearing on March 13.

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