Jharkhand HC mulls central agency probe over non-recovery of ₹600 crore from coal company

SUMAN K SHRIVASTAVA

Ranchi, Feb 14: The Jharkhand High Court is considering ordering an inquiry by a central agency into the State Mining Department’s failure to recover ₹600 crore from PANEM Coal Mines Pvt. Ltd.

During a hearing on February 11, related to a PIL filed in 2015, a bench comprising Justice Sujit Narayan Prasad and Justice Navneet Kumar observed that the case prima facie requires a thorough investigation by a central agency.

Final Opportunity for State to Submit Details

The court remarked:
“However, before passing such an order, we are granting one final opportunity to the State to submit a detailed affidavit explaining its lackadaisical approach in recovering ₹600 crore. The affidavit should also provide details on the expenditure of ₹83 crore from the DMFT Fund for the financial year 2016-17.”

The court has scheduled the next hearing for February 19, when it will take a final decision on the matter.

PIL Alleges Illegal Mining and Fund Misuse

The PIL alleges illegal coal mining and misappropriation of royalty and tax funds by M/s PANEM Coal India Ltd.

The court noted that certificate proceedings were initiated between 2010 and 2020. In some cases, kurki warrants (property attachment orders) and demand notices were issued by the District Mining Officer. However, despite acknowledging that the amount is due, the State Government has taken no effective recovery steps beyond issuing these warrants.

Court Criticizes Government’s Lack of Action

Emphasizing the involvement of ₹600 crore in public funds, the court criticized the State’s sluggish response. It also pointed out that despite clear directives, the Secretary of the Mines & Geology Department, Government of Jharkhand, Jitendra Kumar Singh—who was asked to appear in person—has not submitted the required affidavit as per the court’s order dated January 27, 2025.

The court further noted that since the order was issued in the Secretary’s presence, it is evident that the department is fully aware of the issues raised in this PIL.