SC questions Centre authority on coal blocks
Putting the Centre in a tight spot for the second time in a week, a bench led by Justice R M Lodha underlined that the Mines and Minerals (Regulation and Development) Act did not give any authorisation to the government to decide who will be allocated the coal blocks in different states.
Another bench led by Justice Lodha had on Tuesday asked the Centre if its FDI in multi-brand retail policy was only a "political gimmick" or had fructified into some investments as well. It had also sought an affidavit on ensuring small traders' and farmers' interests.
"Allocation of coal blocks, prima facie, does not seem to be backed by any statutory provision and that surprises us. The situation raises a few fundamental legal questions right away regarding your (Centre's) authority. If there have been no amendments in the Act, it is doubtful that you can do it through executive decisions," the court told Attorney General G E Vahanvati.
It asked the AG to go through the relevant laws, including the Coal Mines (Nationalisation) Act, to find out whether it was empowered to allocate the blocks.
Vahanvati submitted that he did not want to give off-the-cuff answers and sought time to examine the issues. The Bench granted six
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