Tribunal suspends Rs.1773 crore fine on Coal India
Posted on Feb 26 2014 | IANS
New Delhi, Feb 26 : The Competition Appellate Tribunal (Compat) Wednesday suspended the penalty of Rs.1,773 crore imposed by the fair trade watchdog on state miner Coal India (CIL) for abusing its market dominance.
Compat, which disposes appeals against orders passed by the Competition Commission of India (CCI), ordered the suspension would be subject to CIL depositing Rs.50 crore in three weeks' time. The matter has been slated for hearing next on March 13.
The CCI had, in December, held CIL to have abused its dominance by imposing unfair and discriminatory conditions in Fuel Supply Agreements (FSAs) with the power producers for supply of non-coking coal.
The commission's quantum of penalty - Rs.1,773.05 crore - was equivalent to 3 percent of the PSU's average turnover for the last 3 years.
The case against Coal India ensued from multiple complaints from power generators that the state miner supplied coal in an ad hoc manner, misrepresented the grade and quality of coal, and insisted on one-sided supply agreements.