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Delhi HC gives 4 weeks to Sarda Energy to remove coal stock

Delhi High Court today granted four weeks time to Sarda Energy and Minerals Ltd to remove the stock of excavated coal from a mine in Chhattisgarh earlier alloted to it and now won in an auction process by Monnet Ispat and Energy Ltd.

Justice Rajiv Shakdher directed Sarda to remove the entire over six lakh metric tonne stock of coal on or before May 7 when the four weeks will come to an end and said that if it fails to do so then Monnet can dispose it of as per the government's March 26, 2015 order.

"Petitioner (Sarda) will remove excavated coal at site in issue not later than four weeks from today. The period of four weeks will come to an end on May 7.

"In case petitioner fails to remove the stock lying at site in issue on or before May 7, 2015, clause (e) of the March 26, 2015 order will be triggered," the court said.

As per clause (e) of the government's March 26 order, if the prior allottee fails to remove the coal stock within the specified time frame, then the successful bidder is entitled to dispose of such stock and appropriate the sale proceeds to the extent to recover any cost incurred by it in the process and pay the balance to the Coal Ministry.

The judge also clarified that he is only directing Sarda to remove the stock within the time given and thereafter, whether it "dumps it into the sea" or sells it or stores it, would be the company's decision.

The court also said that Sarda "will not impede or cause interference" in the functioning of Monnet and disposed of the company's petition.

It asked the government to facilitate the removal of coal from the site - Gare Palma IV/7 block in Chhattisgarh - by providing the requisite permissions in accordance with law.

The court also said if there is any legal impediment in disposal of coal, then Sarda will make alternate arrangements for storing coal removed from the site.

On the issue of permission for disposal of coal stock, Additional Solicitor General (ASG) Sanjay Jain submitted that CBI is probing the company and it can't be said whether the company will be allowed to sell the stock.

source: http://www.business-standard.com