Supreme Court Quashes Charges Against Karnataka-Based Coal Firm

The Supreme Court set aside a Delhi court's order framing charges against a Karnataka-based firm accused of illegal coal sales. Justices Hima Kohli and Ahsanuddin Amanullah determined the case had civil dispute contours, not criminal. The charges stemmed from a CAG audit, seen as insufficient for criminal intent.

The Supreme Court on Friday overturned a Delhi court's decision to frame charges against a Karnataka-based private firm accused of facilitating illegal coal sales. The justices criticized the CBI's investigation, calling it a 'roving and fishing inquiry' based on an inconclusive CAG report.

A 25-year joint-venture agreement between the Karnataka Power Corporation Limited (KPCL) and Eastern Mineral and Trading Agency (EMTA) led to allegations that EMTA conspired with Gupta Coalfields and Washeries Limited (GCWL) to sell coal rejects illicitly, gaining Rs 53.37 crore. However, the Supreme Court found no criminal intent, pointing to the civil nature of the dispute.

Justices Hima Kohli and Ahsanuddin Amanullah stated that the CAG's audit did not justify criminal charges and highlighted the contractual breach as a civil matter. The court quashed the trial court's order against EMTA and its officials.