SC to examine Centre’s decision to auction Coal Blocks in Jharkhand

The Supreme Court on Tuesday issued notice to the Centre on a plea by Jharkhand government challenging its decision to auction coal blocks in the state to private players for commercial mining.

A three-judge bench headed by Chief Justice of India, SA Bobde sought the Centre’s response in the plea which alleged that the Union government had unilaterally decided to auctions coal resources in Jharkhand without consulting the state government.

“We are inclined to issue notice and hear on the injunction (to stay the auction)”, CJI Bobde said.

Senior counsel Fali S Nariman, who represented the Jharkhand government along with senior counsel Abhishek Manu Singh, pointed out that the auction will take place on August 18 and the matter should be heard before that.

CJI Bobde said that the Centre can extend the auction date and the Attorney General KK Venugopal, who was representing the Centre, should look into it.

The matter is likely to be heard next on August 17.

Prime Minister Narendra Modi had, on June 18, launched virtual auction process of 41 coal blocks for commercial mining. These coal blocks are situated in the states of Jharkhand, Madhya Pradesh, Chhattisgarh, Odisha and Maharashtra. Nine of the 41 coal blocks are in Jharkhand.

The decision was part of the series of announcements made by the Government of India, under the Aatma Nirbhar Bharat Abhiyan aimed at making India a self-reliant country. The Prime Minister said that after the reforms, the coal sector in India will become completely self-reliant and will also make eastern and central India, with substantial tribal population, pillars of development.

The Jharkhand government then moved the Supreme Court in June, first by filing a writ petition and then by way of a suit under Article 131 of the Constitution, challenging the centre’s decision.

Article 131 empowers the Supreme Court to hear disputes between central government and states.

Jharkhand submitted that the decision was made unilaterally by the Centre without consulting with the state and it was highly inappropriate.

“The state is the owner of the mines and minerals situated within the territory of the plaintiff (Jharkhand). The defendant (Centre) has announced the auction unilaterally without consultation with the plaintiff (Jharkhand),” the suit said.

Though there were consultations regarding the same between the Centre and states in February, Jharkhand has contended that fresh consultations should have been held in view of the changed situation due to the Covid-19 pandemic and the lockdown imposed to combat the same.

“The meetings of February 2020 are meaningless as they do not take into account the materially changed circumstance arising out of the Covid-19 pandemic. Renewed consultation with the plaintiff state was indeed required due to Covid-19 pandemic which has brought the nation and the entire globe to a standstill, in a manner never seen before,” the plea stated.

It also took objection to the fact that centre resorted to such a move during time of Covid-19 pandemic.

“The impugned action impinges the rights of the indigenous people of the plaintiff state and will lead to large scale displacement and consequential rehabilitation and re-settlement issues,” the plea added.

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