NEW DELHI: The UPA government may have cut a sorry figure in the Supreme Court during scrutiny of coal block allocations that once threatened to reach the PMO’s door but then attorney general Goolam E Vahanvati got a note of appreciation from the bench headed by Chief Justice RM Lodha.
Appearing for some companies whose coal block allocations could be cancelled, senior advocate Harish Salve said the entire facts and documents relating to the allocations were not placed before the court by the government, leading to the bench taking a misinformed view and declaring them illegal. The late Vahanvati was representing the coal ministry during scrutiny of alleged irregularities in coal block allocations.
Salve also faulted the government for taking a stand before the court that letters of allotment were not bankable documents and that these did not confer any right on the allottees till they signed a lease agreement with the state where the coal block was located.
But the bench took objection to the references against Vahanvati. The CJI said, “The man is no more. But one must appreciate the effort and labour he put into the case. The methodical approach he had adopted in putting the documents relating to the screening committee was commendable.”
Salve clarified that he was not accusing the former AG of suppressing information. “After all, an AG can tell the court as much as he is briefed by ministry officials,” he added.
Salve said the allottees had invested thousands of crores of rupees in the development of coal blocks and end-use plants. The coal block allocations were stuck mainly because of environment and forest clearances, which again were under the central government.
“On the one hand they delayed grant of clearances, and on the other hand they are seeking cancellation for not making the coal blocks operational, and consequently the plants,” he said.
He drew a parallel with the experience of Tata and Adani, who had bid for coal blocks in Indonesia as lifting coal from there was cheaper than importing from other countries. “Alarmed by foreign companies, especially those from China, bidding successfully for coal and taking the natural resources outside the country, the Indonesian government imposed more tax on foreign companies, making lifting of coal from there economically unviable,” he said.
The bench replied, “If you accepted a foreign country’s diktat, why can’t you accept the Supreme Court’s judgment (declaring the coal block allocations illegal) arrived at after due legal process.”
Salve’s quick wit came to the fore. “Indonesia does not care whether I am providing power to Punjab or citizens in any part of our country. And I can always come back to tell my grievances to my Supreme Court,” he said.
“My heart is not bleeding for the possible consequences to the country’s economic situation. But these companies are also owned by citizens of India who have invested huge money. Let them be heard by some committee so that no one can say later that the Supreme Court condemned them without a hearing to the allottees,” he added.
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