HC to hear GVK Power plea against Coal Ordinance
3 Feb 2015 12:42 AM GMT
Delhi High Court on Monday agreed to hear GVK Power Ltd’s plea challenging provisions of the 2014 Coal Ordinance on the grounds that it was aggrieved at the “arbitrary” determination of compensation for its mining infrastructure which was much lower than it expected.
A bench of justices Badar Durrez Ahmed and Sanjeev Sachdeva agreed to hear the matter tomorrow after it was mentioned before it by senior advocate P Chidambaram.
GVK is aggrieved by the government’s January 28 decision by which it “arbitrarily” determined quantum of compensation at Rs 57 crore, while the company claims it should have been between Rs 276 crore and Rs 350 crore.
Chidambaram said till the issue of compensation was decided, no company, including GVK, would be able to bid for the Tokisud coal block in Jharkhand, as the government on February 1 had come out with an addendum to January 28 decision that the compensation would be subject to any upward revision ordered by a court.
A bench of justices Badar Durrez Ahmed and Sanjeev Sachdeva agreed to hear the matter tomorrow after it was mentioned before it by senior advocate P Chidambaram.
GVK is aggrieved by the government’s January 28 decision by which it “arbitrarily” determined quantum of compensation at Rs 57 crore, while the company claims it should have been between Rs 276 crore and Rs 350 crore.
Chidambaram said till the issue of compensation was decided, no company, including GVK, would be able to bid for the Tokisud coal block in Jharkhand, as the government on February 1 had come out with an addendum to January 28 decision that the compensation would be subject to any upward revision ordered by a court.
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