Shillong, January 28: Justice BP Katakey (retired), appointed by the Meghalaya High Court to lead the committee on coal transportation, has called on the government to submit a proposal within two weeks to limit the extensions granted for depositing bid values in coal auctions.
Highlighting potential risks, he said, “There has to be an end to it. You cannot go on extending the time to lift the coal because, if you are extending the time for an unlimited period, complications may arise as the government, being the custodian of the coal, could face litigation.”
Citing an example, Justice Katakey elaborated, “If I am a successful auction bidder and purchase 1,000 metric tons, but I am allowed to lift the coal after one year, at the time of lifting, I might find only 900 metric tons available. I could then claim damages for the missing 100 metric tons. This could expose the government to unnecessary litigation. Why should an unlimited period be granted for the benefit of these auction purchasers?”
Justice Katakey suggested a stringent approach, stating, “I have asked the government to limit the time for extensions. If the bid amount is not paid within that period, the deposited amount should be forfeited, and the coal should be re-auctioned.” He also directed the government to impose demurrage charges on bidders who fail to lift their coal within the stipulated period. “The government cannot continue to spend public money to protect coal that has already been purchased, especially when coal depots are on private land, and the government has to compensate the landowners from public funds,” he said.
Providing an update on coal inventory, Justice Katakey revealed that 13 lakh metric tons of coal have been auctioned, out of which bidders have deposited the full bid amount for 8 lakh metric tons. “Around 5 lakh metric tons have been issued Mineral Transport Challans (MTCs), but for the remaining 5 lakh metric tons, the bid money is yet to be deposited. Additionally, 3 lakh metric tons remain unauctioned, including coal for which earnest money was forfeited,” he noted.
He criticized the low lifting percentage, saying, “The lifting percentage is much less than the quantity sold in the auction. Bidders claim the lack of a market as the reason, but that is their problem, not the government’s.”
Justice Katakey also stated, “I have asked Deputy Commissioners of various districts to provide data on coal seized from November to January. Except for South Garo Hills District, which reported over 2,500 metric tons of freshly seized coal, no other district reported seizures. Regular patrolling revealed that mining activities are still ongoing in South Garo Hills. If coal has been seized, it indicates illegal mining occurred in that district. Based on this information, I will submit my report to the High Court, and it is for the Honorable High Court to take appropriate action.”
Justice Katakey’s firm stance aims to streamline coal management and curb illegal mining while holding stakeholders accountable for their responsibilities.