HC seeks govt's response on power & steel companies plea

Delhi High Court today sought government's response on Prakash Industries Ltd's (PIL) plea challenging 2014 Coal Ordinance' provisions on determination of compensation payable to prior allottees towards mining infrastructure.
A bench of justices Badar Durrez Ahmed and Sanjeev Sachdeva issued notice to the Coal Ministry and sought its response by March 19 on PIL's plea.
The court also asked the government to file detailed counter-affidavits in the similar pleas filed by GVK Power (Goindwal Sahib) Ltd, Jayaswal Neco Industries Ltd (JNIL), Jindal Power Ltd and Jindal Steel and Power Ltd, by March 19.
It also said the interim order regarding auction of blocks, which these companies were earlier allotted and the allocation of which were cancelled by Supreme Court, would continue.

The court in its earlier interim order had said the auction of the several blocks, including Tokisud north in Jharkhand and Gare Palma IV/2, IV/3 and IV/4 blocks in Chhattisgarh, would be subject to the outcome of the petitions of the companies.
During the proceedings, senior advocate P Chidambaram, appearing for GVK, said it was in possession of a fully operational coal mine - Tokisud north coal block in Jharkhand - which it has to hand over on March 31.

"However, question of compensation has to be decided before we hand over the mine," he said.
He argued that before the company hands over the mine, the court has to decide whether the principles adopted by the government to compute and determine compensation was correct.

Additional Solicitor General Sanjay Jain and advocate Akshay Makhija, appearing for the ministry, assured the bench the government would file a comprehensive affidavit.