CIL moves SC on coal black marketing issue

The coal supplies were stopped after CBI registered FIR against Alok Fuels and others in June last year alleging that these companies had sold the allotted coal at higher price instead of utilising it as proposed

Coal India and its subsidiary Bharat Coking Coal Ltd, have moved the Supreme Court challenging the Jharkhand High Court’s order that directed resumption of coal supplies to certain tainted companies.
The CBI had lodged FIR against 10 companies, including Alok Fuel, accusing them of either diverting or black marketing of allotted coal supplies.

Even the investigating agency had also conducted raids in the premises of these consumers.

A Bench headed by Justice Altamas Kabir has posted the matter for final disposal on July 15. Earlier, it has asked the parties to maintain status quo in respect of the impugned high court.

After the New Coal Distribution Policy came into effect, CIL had entered into a fuel supply agreement with Alok Fuels in November 2008 on a condition that it would not sell or divert or transfer coal for any other purpose and the same shall be treated as material breach of agreement.

The coal supplies were stopped after CBI registered FIR against Alok Fuels and others in June last year alleging that these companies had sold the allotted coal at higher price instead of utilising it as proposed.

The accused firms including Alok Fuels had moved to the high courts of Jharkhand, Patna and Allahabad challenging the CIL’s decision to suspend coal supplies to them.

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