SC lens on coal block allocation to Adani JV

NEW DELHI: The Supreme Court on Tuesday agreed to hear a plea challenging coal block allocation to a joint venture of Adani Enterprises Limited and Rajasthan Rajya Vidyut Utpadan Nigam Ltd and issued notice to the PSU.

A bench headed by Justice Madan B Lokur issued notice to RRVUNL and Rajasthan Collieries Ltd after advocate Prashant Bhushan contended that the joint venture was still in operation despite the SC order in 2014 that any joint venture companies which had been made in a manner so as to transfer mining rights to a private company were illegal.

“This court, by judgment dated September 24, 2014, cancelled all coal blocks (including Parsa East-Kente Basan coal block) except two allocations which were made to central government PSUs not having joint venture. All PSU allocations to undertaking having JV with private companies were cancelled. That in spite of the aforesaid legal position and also after entering binding agreement on the re-allotment of coal mines, RRVUNL continued with the JV and its agreement with Adani Enterprises.