SC judgment on Coal Scam

26TH August 2014



The Centre of Indian Trade Unions (CITU) welcomes the Supreme Court’s observation in declaring all coal-block allocations for captive use since 1993 illegal on ground of gross lack of transparency and fairness, exercise of arbitrariness and violation of guidelines causing huge loss to public exchequer as well as to the consumers both in industry and the common people.  In fact such irregularities and corruption being indulged since 1993 in coal-block allocations for captive use under almost all successive central governments since then vindicate the inbuilt corruption-prone character of the neoliberal policy trajectory; in fact, the legislation amending and/or diluting the Coal Mines Nationalisation Act to permit such allocation of coal blocks to specific industry for captive use has been proved to be self-defeating and opened the floodgate of rampant exercise of unfair arbitrariness and discretion in such allocations particularly to private sector giving rise to such huge scam. None of governments in the centre since 1993 can wash-off their hands from the responsibility of such scam and irregularities.

It should also be noted that out of 200 plus coal blocks allocated for captive use since 1993, hardly 30 blocks could be brought under operation during these long 21 years, which also comprehensively proved the total inefficacy and impracticability of the very scheme of such allocations for captive purpose, thereby warranting scrapping of the concerned enabling legislation.

Supreme Court will be considering the consequences of cancellation of coal block allocations for captive use because of the irregularities/illegalities involved, on September 1, 2014 as reported by the press.

In this context, CITU is of the considered and firm opinion that the allocated coal blocks should come back to Coal India Ltd, and Coal India should be empowered and strengthened with adequate financial, operational and functional autonomy to act as an only nodal agency to develop, mine, produce and deliver coal both to industries and the common people. CITU demands upon the Govt of India to ensure return of all the coal blocks to Coal India Ltd for further development, mining and production operation besides taking concrete steps to bring those responsible for the coal-gate scam and irregularities to book.

Issued by,

General Secretary

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