New Delhi: The Supreme Court (SC) on Wednesday said that the Centre directly inviting applications for allotment of coal blocks rather than routing it through the states, as mandated by law, was the “starting point” of all irregularities in a strong-worded observation.
A bench of three-Judge, headed by Justice R.L. Lodha also asked the Centre why it has not cancelled allocation letters issued to 29 private companies before 2005 as they are yet to get environmental and forest clearance, or mining lease.
The Bench said, “They have done it at their own risk. Investment per se does not create a right in their favour. Why don’t you deallocate them like the 40 you have already done?
Apex court said it when attorney general G.E. Vahanvati said that most firms have already made huge investment of more than Rs.1,000 or Rs.5,000 crore.
The apex court further criticizes the Centre and said, “A wrong impression was created among the coal-rich states that they have no say in the allocations accept recommendatory. It also struck at the very root of federal structure.
The Bench, after hearing coal-rich states Chhattisgarh, West Bengal, Maharashtra, Jharkhand, Odisha, Madhya Pradesh and Andhra Pradesh on their role in the allocation of blocks and the process followed, said that their stand is completely contradictory to that of Vahanvati’s.
Meanwhile the states submitted that the Centre, which was the “master”, completely controlled and regulated the allocation and they merely followed its directions, Vahanvati had earlier submitted that the Central government merely identified suitable blocks, and it was the states that executed the leases. The states also added that an impression had been created that the Centre was the supreme authority after the nationalisation of mineral resources.
The Bench said, “Why is there a divergent stand? All states say that the Centre’s decision is final and they are bound to follow it, but the Centre does not own this position. Even if the state has an objection, it has to be considered.”
The apex court also said, “Why don’t the states have power to say ‘no’ when the Centre says a particular person should get licence. In fact, all the applications should have been made to the states.”
Bureau Report
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