New Delhi: The Delhi high court on Monday asked the Union government why Jindal Power Ltd had not been allowed to buy coal in an auction.
The Naveen Jindal-owned Jindal Power Ltd, a subsidiary of Jindal Steel and Power Ltd, went to court after the government allotted the Gare Palma block it won in the recent coal auctions to state-owned Coal India Ltd (CIL).
On Monday, the Jindal group company claimed that Coal India, which is acting as a custodian for the block until the dispute is resolved, had cancelled its bid for purchasing coal through an e-auction.
“What is the whole objective? This is not how the government should function. (You) can’t do this,” the court told the government in a verbal observation.
A bench of justices B.D. Ahmed and Sanjeev Sachdeva agreed to take up the case on 26 May to hear Coal India as well.
Source: Mint; 25 May 2015