Delhi HC lifts stay on bidding for Chattisgarh coal blocks

After two weeks of long-winding litigation, the Delhi High Court today lifted the stay in final bidding for three Chattisgarh coal blocks. The three coal blocks are: Gare Palma IV/1, IV/4 & IV/7

The HC also dismissed Sarda Energy’s plea challenging 2-stage biudding auction process.

The HC said that the process is neither arbitrary not irrational. The HC also ruled out any likelihood of cartelization saying the auction is not designed to favour any select company.

One barometer that the Delhi High Court used in terms of gauging the efficacy was the fact that the closing price for many of these blocks was in various multiples of the floor price that has been prescribed by the government.