Supreme Court Denies JSPL's Appeal In Odisha Coal Mine Dispute

The plea filed by Jindal Steel and Power or JSPL to stop the coal ministry from developing the Chhendipada coal mine in Odisha was denied by the Supreme Court on Wednesday.

The Odisha coal block was acquired by Rungta Sons, the highest bidder in an e-auction on commercial coal mines held on 28 February. After Rungta Sons, a Jharkhand-based subsidiary of Rungta Mines, won the Chhendipada (revised) coal block, JSPL claimed that technical issues with the MSTC platform kept them from making a better bid.

Chief Justice DY Chandrachud's panel maintained the 25 July ruling of the Delhi High Court, dismissing JSPL's appeal to revoke Rungta Sons' acquisition of the Odisha coal block.

As reported in the media, Counsel Gauri Rasgotra, representing JSPL, argued that MSTC portal issues during the e-auction on 27 February had hindered their ability to make a higher bid for the coal mine, which has 513 million tonnes of geological reserves.

JSPL claimed they had offered a premium of 20 per cent of the revenue share, in contrast to the 13 per cent closing bid, with the aim of maximizing revenue. The company, one of the three technically qualified bidders for the coal mine, stated they were actively participating in the e-auction and reported the technical glitch promptly to SBI Capital Markets, which advised the coal ministry.

This issue, according to Rasgotra, resulted in an unfair auction process with premature completion at a lower bid premium. In opposition to JSPL's claim, senior counsel AM Singhvi, representing Rungta, contended that there were no glitches on the MSTC portal, as simultaneous bids were received.

He also questioned why JSPL was approaching the Supreme Court 75 days after the High Court's judgment. MSTC counsel Amar Dave likewise denied any portal glitches, citing the receipt of 11 bids from 6 bidders during the same period.