Ranchi, Dec. 5: Jharkhand High Court today stayed a Union government order that cancelled a coal block allocated to five private companies, asking the Centre to file a counter affidavit within four weeks.
The Centre, on November 22, had also passed orders to revoke the bank guarantees of Nilachal Iron and Power Limited, Adhunik Alloys, Electrosteel Castings Limited, Pawanjay Steel and Power Limited and Jharkhand Ispat.
The companies moved the high court, stating they were jointly provided the North Dhadu coal block in Latehar district by the Centre after the state government’s approval.
The coal ministry hastily cancelled the block at the back of nationwide scam on allocation of coal blocks, the petitioners said. The government has also not given any opportunity to the petitioner companies to explain why their coal block should not be cancelled.
The petitioners argued this was a violation of natural justice and reflected the arbitrariness of the government.