Shares of Jindal Steel & Power (JSPL) surged 15.3 percent intraday Friday on getting clean chit from Competition Commission of India (CCI) in coal auction cartelisation case.
The CCI on Thursday gave a clean chit to JSPL on allegations of cartelisation saying it hasn't found enough evidence to support claims of cartelisation, reports CNBC-TV18 quoting sources. However, the High Court's verdict is still awaited on the same.
The case is related to the government's decision of cancelling coal mine bids of JSPL and Balco for four blocks amid reports of speculation of cartelisation during coal auctions.
In one complaint, there was allegation of cartelisation & anti-competitive practices while other complaint alleged cartelisation in coal block auction process.
The government had forwarded these complaints alleging cartelisation against JSPL to CCI, stating the company indulged in anti-competitive practises and price cartelisation. Then JSPL had also legally challenged by filing case against government's decision of rejecting bids for two coal blocks (Gare Palma IV/2&3 & Tara).
Government had cancelled JSPL's winning bid for Gare Palma IV/2&3 & Tara coal blocks. It had cited low bids as the reason for cancellation of the winning bids.
In February, Jindal Power, a wholly owned subsidiary of JSPL, had emerged as the lowest bidder for Gare Palma IV/2&3 coal block. Earlier it was operated by company itself before the Supreme Court deallocated through its order in September 2014. SC had cancelled 214 coal blocks out of 218 coal blocks allocated since 1993 citing illegal.
At 09:29 hours IST, the scrip of Jindal Steel & Power was quoting at Rs 88.85, up Rs 7.25, or 8.88 percent on the BSE.
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