An informal coal miner shovels coal at a coal mine shaft in Nalaikh, Ulaanbaatar, Mongolia. (Photographer: Taylor Weidman/Bloomberg)

Supreme Court Seeks Centre’s Reply On Essar Power’s Plea To Surrender Coal Block

The Supreme Court sought the Centre’s response on a plea of Essar Power MP Ltd. seeking to surrender the coal mines won in the 2015 auctions and refund money paid to the government.

A bench comprising Chief Justice Ranjan Gogoi and Justice Deepak Gupta issued notice to the Centre on the appeal of Essar Power which has challenged the Delhi High Court’s decision disallowing its plea.

Essar had won Tokisud North coal mine in Jharkhand in the auctions carried out by the Centre in 2015-16.

In 2015, the power company had moved the high court protesting against a change in regulations made by the Centre and alleged that it was done after the conclusion of auction proceedings.

The company had submitted that it wanted to surrender the coal block and hence, its deposit be returned.

The firm had also sought a direction that the government be restrained from encashing bank guarantee of Rs 264 crore. The plea was rejected by the high court.

The apex court, while issuing the notice to the Centre on the plea of the firm, said the encashment of bank guarantee would be subject to the final outcome of the appeal of Essar Power MP Ltd.

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