Calcutta, Oct. 12: The Children’s Investment Fund Management (TCI) of the UK has filed a lawsuit in Calcutta high court against the directors of Coal India for breach of fiduciary duties and failing to perform their functions with care and skill.
The lawsuit has also named the Union government as a party for abusing its powers as a majority stakeholder in Coal India, TCI said in a statement on Friday.
Justice Indra Prasanna Mukerji asked CIL, the largest coal miner in the country, to file an affidavit by November 30. Hearing on the matter is likely to start from December 12. No interim order was passed today.
In August, TCI had filed a writ petition in Delhi high court against the Navaratna firm and the coal ministry.
TCI, which has about 1 per cent stake in the Calcutta-based company, said CIL had suffered losses on many accounts. It made the directors responsible for the losses.
According to TCI, Coal India has lost Rs 8,700 crore in pre-tax profit by reversing the price rise of December 31, 2011.
“Further, by failing to raise FSA (fuel supply agreement) coal prices to market levels, the directors have cost CIL a staggering Rs 212,250 crore in pre-tax profit since the IPO. Ninety per cent of such profits could have flowed to Indian people as dividends,” TCI said.
TCI partner Oscar Veldhuijzen said: “We have brought this claim reluctantly and only after repeated attempts to engage with CIL directors have yielded few results.”