Coal India shares fall over 2% as CCI slaps Rs 591 crore penalty
New Delhi: Shares of Coal India fell by over 2% on Monday after the Competition Commission of India (CCI) imposed a fine of Rs591 crore on the state-owned firm for having discriminatory conditions in fuel supply pacts.
The stock ended the day with a loss of 2.18% at Rs 291.55 on BSE. During the day, it declined by 2.51% to Rs 290.55.
At NSE, shares of the company went down by 2.13% to close at Rs 291.50. In terms of volume, 8.40 lakh shares of the company were traded on BSE and over 49 lakh shares changed hands at NSE during the day.
Apart from directing the company to “cease and desist” from anti-competitive practices, the watchdog has ordered modification in the agreements.
In a 56-page order, the watchdog has found the company violating competition norms by “imposing unfair/ discriminatory conditions in the matter of supply of non- coking coal to power producers”.
The penalty amount of Rs 591.01 crore translates to 1% of Coal India’s average turnover for the three-year period from 2009-10 to 2011-12.