Coal news and updates

Stiff penalty for previous block-owner on handover delay

October 31: Any company or official of a company that owns an operating coal block and causes deliberate delay in providing relevant papers for giving possession of the block to the new owner post e-auction will not only be jailed but also financially penalised, as per provisions of the Coal Mines (Special Provisions) Ordinance, 2014.

Clause 23 of the Ordinance clearly states that if a person obstructs or causes any impediment in taking possession or in the management of the working mines by the central government or the designated custodian, shall be punished with imprisonment for a term which may extend to two years.

Such a person may also be penalised with minimum fine of Rs 1.0 lakh (Rs 100,000) per day and in the case of continuing failure, with a maximum fine of Rs 2.0 lakh (Rs 200,000) for every day during which the failure continues.

Such person may be punished with imprisonment as well as financial penalty, depending upon the nature of the offence, the Ordinance enunciated.

The above penalties would also be applicable if a person fails to deliver to the designated custodian books of account, registers or any other document in his custody relating to the operating mine or destroys or misuses any mine infrastructure or coal stock and retains any property of such a mine or removes or destroys the same.

Clause 25 of the Ordinance says, where an offer under this Act has been committed by a company, every person who at the time the offence was committed was in-charge of, and was responsible to the company for conduct of business of the company as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly.

The Ordinance further says where it is proved that the offence has been committed with the consent or connivance of, or is attributable to, any neglect on the part of any director, manager, secretary or other officer of the company, such personnel or other officer shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.