Delhi HC restrains Centre from taking further steps concerning its order imposing Rs 66 cr penalty on NTPC

New Delhi [India], July 11 (ANI): The Delhi High Court has restrained the Centre from taking further steps concerning its order imposing a penalty of over Rs 66 crore on National Thermal Power Corporation (NTPC) for allegedly failing to comply with the production schedule for a coal mine in Chhattisgarh for two years.
Justice Yashwant Varma issued notice on the petition by NTPC challenging the order and sought a response from the central government within 10 days.
Justice Yashwant Varma issued notice to Center, Office of Nominated Authority (Ministry of Coal) and State Bank of India on the plea and directed to file affidavit within a period of ten dadys from today. The NTPC shall have 48 hours thereafter to file a rejoinder affidavit.
The court observed that the matter requires consideration while noting that the action under challenge is initiated against a government company and that no reasons were recorded by the concerned authorities while rejecting the contentions raised before it. Let counter affidavit be filed within a period of ten days from today. The petitioner shall have 48 hours thereafter to file a rejoinder affidavit, said the court in its interim order dated July 8.
Till the next date of listing, the respondent shall stand restrained from taking further steps pursuant to the impugned order dated July 6, 2022, the court directed. The NTPC, in its plea, submitted that the Centre did not appreciate the ground realities which hampered the coal production at the Talaipalli coal mine and arbitrarily accepted the recommendations of a Scrutiny Committee and consequently issued the appropriation order dated July 6, 2022, imposing a penalty of Rs 66,01,42,080 towards non-compliance with the production schedule for financial years 2019-20 and 2020-21.
It was also stated that the Cabinet Committee on Economic Affairs headed by the Prime Minister itself had appreciated the difficulties and problems being faced by mine allottees in PSUs in meeting the coal production requirements and development of coal mines on account of various reasons.
Senior advocate Sandeep Sethi while arguing on the petition submitted that the entire process came to be derailed on account of a failure on the part of the Mines Development Officer to act in accordance with law and thus derailing the production activity of the petitioner.
The Bench observed, “No reasons have been recorded by either the Screening Committee or the Competent Authority while rejecting the various contentions which were addressed and are noticed above. The Court also bears in mind that the impugned action itself is initiated against a Government company. The matter requires consideration.” (ANI)