HC stays decision to allot 3 cancelled JSPL blocks to CIL

The government had on Saturday cancelled bids of JSPL’s three blocks — Gare Palma IV/2, Gare Palma IV/3 and Tara — and BALCO’s Gare Palma IV/1 in Chhattisgarh amid speculation of cartelisation and had said that it will take a final decision on these mines after deliberations.

On Monday, JSPL approached the Delhi High Court with two separate pleas, alleging that government decision had been taken “arbitrarily” and that the bids submitted by JSPL were much higher than the intrinsic value determined by the government. The Centre has decided to hand over the coal blocks to CIL. The deadline for handing over of the Gare Palma blocks expires on March 31 under orders of the Supreme Court, while the final decision is yet to be taken for the Tara block in Ambikapur, Chhattisgarh.

The court, however, issued status quo orders and restrained the government from taking a final decision till the next date of hearing. “We are asking you don’t take a decision, don’t precipitate the situation,” the court told Additional Solicitor General Sanjay Jain, adding that it was “not clear how this whole thing has been worked out”.

While the court will now hear the government’s reply on Gare Palma blocks on Thursday, it allowed two weeks time to the government to file its reply on the issue of annulment of the tender process of the Tara block.

The plea relating to the Tara will now be heard on April 16. Senior Advocates Kapil Sibal and Gopal Subramaniam had appeared for JSPL in the two cases, with Subramaniam urging the court to issue a stay on the decision to reallocate Tara.

Subramaniam also alleged that the government’s decision to disapprove the bids was done to “penalise” JSPL for “having come to court earlier.”

The court has also asked for the relevant records relating to the decision to cancel the bids, and will consider the issue on Thursday. In its two pleas, JSPL had challenged the March 20 orders of the coal ministry cancelling the allotment of the blocks to the company, and had also sought directions to the government for declaration of JSPL as the successful bidder for the three mines.