In a setback to Jindal Steel and Power (JSPL), the Delhi High Court has upheld the decision of the government to cancel Jindal Power's bid for the Gare Palma and Tara blocks.
First half of 2015 saw the auctioning of coal blocks which included Gare Palma and Tara. It was an e-auction process and in this process new subsidiary of Jindal Steel and Power (JSPL), Jindal Power, had also made commissions. They had made successful bids and were awarded contracts.
Subsequently, on March 20, the government had cancelled their bids saying that the price of the bids for the blocks were not fair and did not reflect the fair market value.
Jindal Power had then moved the Delhi High Court arguing that the government's reason is not strong enough and that they had participated in the e-bidding process as per the government’s direction.
However, the court in its ruling, said that it is holding the government's decision as good in law and the court cannot intervene at this stage.
The road forward for Jindal Power is an appeal in Supreme Court. For now though, the news comes as a setback to the company and the stock fell 3 percent.
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