New Delhi, Feb 28 – The Supreme Court on Friday directed the Central Bureau of Investigation (CBI) to approach the Delhi High Court against the discharge of a company and three individuals in a coal block allocation scam case.
A bench comprising Chief Justice Sanjiv Khanna and Justice Sanjay Kumar was hearing the CBI’s appeal against an August 9, 2024, order by a special court in Delhi. The lower court had discharged M/s Corporate Ispat Alloys, along with Manoj Jayaswal, Sanjeev Jha, and Sanjeev Munjal, from the case.
This directive is significant as it comes after earlier Supreme Court orders between 2014 and 2017 that barred accused persons from approaching the high court in coal block allocation cases. At that time, the apex court had mandated that all appeals from trial court orders in these cases should only be filed before the Supreme Court.
SC Seeks Delhi HC’s Review on Discharge Order
The Supreme Court was initially inclined to issue a notice on the CBI’s appeal. However, Chief Justice Khanna observed that the special court’s discharge order was final in nature and should be reviewed by the Delhi High Court.Senior advocate and special CBI prosecutor R.S. Cheema agreed with the bench’s reasoning, stating that the investigating agency was prepared to withdraw its appeal from the Supreme Court and move the high court instead.
SC Considers Modifying Earlier Orders
Previously, while hearing a batch of petitions, the Supreme Court had indicated that it might revise its earlier rulings that restricted high courts from entertaining appeals against trial court decisions in coal block allocation cases. The original intent behind these restrictions was to expedite trials and prevent accused individuals from delaying proceedings by seeking relief in the high court.During the hearing, Chief Justice Khanna questioned the rationale behind the CBI's stance, asking, "Is this the stand of the CBI that everything should come to us?" He further noted, "We also want to have the benefit of Delhi High Court orders passed in these cases."
Senior advocate Mukul Rohatgi, representing a litigant, argued that the Delhi High Court could not be barred from hearing appeals or pleas for discharge in these cases.
Background: The Coal Block Allocation Scam
The coal block allocation scam led to a landmark 2014 Supreme Court ruling that canceled 214 coal block allocations made by the central government between 1993 and 2010. Following multiple Public Interest Litigations (PILs), the apex court directed that trials be conducted by a special CBI judge.The CBI subsequently registered 57 cases related to the scam, while parallel money laundering cases were also initiated.
This latest development could set a precedent for future appeals in the ongoing legal battle over coal block allocations, allowing the Delhi High Court to adjudicate on trial court orders in such cases.