SC cancels 214 of 218 coal block allocations.

The Supreme Court on Wednesday cancelled all coal block allocations except for government-run blocks that operate on a non-JV basis. The criteria fits just four of the 218 blocks that were deemed illegal by the court in its August order. Media reports said exempted coal blocks included allocations to NTPC, SAIL and Sasan UMPP. The apex court in its order said that there was no reason to save the other blocks as the allocations were arbitary. The order will be operational after six months, the apex court said, adding the government could hold auctions for these blocks post 31 March, 2015. A penalty of Rs 295/tonne will also be imposed on all cancelled block holders. On August 25, a Supreme Court Bench headed by Chief Justice R M Lodha had said that entire allocation of coal blocks from 1993 till 2010 was illegal, arbitrary, non-transparent and without application of mind and guidelines. The screening committee which had sat 36 times to take decisions did not make any objective evaluation while distributing national wealth, the judgment delivered by a bench headed by Chief Justice R M Lodha said. The allocations both under the screening committee route and the government dispensation route, were arbitrary and illegal, according to the three-judge bench. The court was hearing PILs moved by Common Cause, advocate Manohar Lal Sharma and a few others challenging the allocations as tainted with corruption and nepotism. They had sought cancellation of all such allocations.