Jindal Power moves HC seeking refund of additional levy paid for coal auction

The Delhi high court seeks the response of the Centre on the issue before the next date of hearing


The case will be heard next on 13 February, 2017.
The case will be heard next on 13 February, 2017.

New Delhi: Jindal Power Ltd. moved the Delhi high court on Tuesday, seeking a refund of Rs1,185 crore paid as additional levy for participating in the coal auction that was subsequently cancelled in September 2014.

A bench comprising of chief justice of Delhi high court, G. Rohini and Justice V. Kameswar Rao, before whom the matter was brought, sought the response of the Centre on the issue before the next date of hearing.

Jindal’s plea challenged the provisions of the Coal Mines (Special Provisions) Act, 2015 under which payment of the additional levy was made mandatory.

In its plea, the company contended that it had paid a total of Rs1185,20,33,280 as additional levy for participating in the auction process and sought refund of the entire amount. It has questioned a 2012-13 report by the Comptroller and Auditor General of India (CAG) to the extent that it calculated a net gain of Rs295 per metric tonne of coal to allottees of coal blocks.

In September, 2014, the apex court had cancelled allocation of 214 coal blocks on grounds that the allotment process was arbitrary and illegal.

The case will be heard next on 13 February, 2017.

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