Tata Power shares in focus after Delhi High Court seeks Centre's response on compensation dispute
Tata Power shares will be in focus after the Delhi High Court sought responses from the Central government and other parties on a petition by Tata Power Company (TPC) challenging the coal ministry’s order reducing compensation for the deallocation of the Mandakini Coal Block in Odisha.
The High Court instructed the ministry and others to maintain the status quo on the compensation order until December 4, the next hearing date.
The nominated Authority's in its revised final compensation order had reduced the compensation payable to it, amongst others, for the deallocation of the Mandakini Coal Block at the instance of Karnataka Power Corporation (KPCL), the new allottee of the coal block, and IFCI Ltd, a “secured creditor”, according to TPC. It further said that such revision of the final compensation orders of April 2020 and August 2021 is “arbitrary”, “was wholly without jurisdiction” and passed without due application of mind.
Tata Power said the nominated authority, a statutory authority under the Coal Mines (Special Provisions) Act, 2015, had reduced the land compensation to be paid to the prior allottees from Rs 182.52 crore to Rs 114.91 crore on the grounds that there was a lack of clarity in the definition of prior allottee.
Challenging the authority's order, TPC told the HC that it along with Jindal Photo (JPL) and Monnet Ispat & Energy (MIEL) have been mentioned as the prior allottees of the Mandakini Coal Block. However, the authority had erroneously considered IFCI Ltd as a secured creditor of the
