SC quash charges against K’taka pvt. firm accused of illegal sale of coal

New Delhi: The Supreme Court on Friday set aside a Delhi court order framing charges against a Karnataka-based private firm, accused of facilitating illegal sale of coal rejects through another firm, saying the CBI embarked on a “roving and fishing inquiry” based on a Comptroller and Auditor General (CAG) report.

A joint-venture agreement was executed between the Karnataka Power Corporation Limited (KPCL) and M/s Eastern Mineral and Trading Agency (EMTA) for a period of 25 years for the development of captive coal mines and supply of coal to a thermal power plant of the KPCL -- the Bellary Thermal Power Station (BTPS).

It was alleged that EMTA entered into a criminal conspiracy with an objective to facilitate illegal sale of coal rejects by GCWL (M/s Gupta Coalfields and Washeries Limited) that were generated during washing of coal and gained undue pecuniary advantage to the tune of Rs 53.37 crore.

“The underpinnings of what was a civil dispute premised on a contract between the parties, breach whereof could at best lead to determination of the contract or even the underlying lease deed, has been painted with the brush of criminality without any justification. This criminal intent has been threaded into the dispute by the respondent, CBI, by misinterpreting the clauses of the agreements governing the parties and by heavily banking on the observations made in the audit report of the CAG that has not attained finality till date,” said a bench comprising Justices Hima Kohli and Ahsanuddin Amanullah in its judgment.

The bench termed the infirmities “glaring” and quashed the trial court’s order framing charges against the EMTA and its officials.