Court restrains Center from taking further steps in NTPC’s Rs 66 crore fine case

Court restrains Center from taking further steps in NTPC's Rs 66 crore fine case

Delhi High Court said that the matter needs to be considered

New Delhi:

The Delhi High Court has restrained the Center from taking any further steps in the matter of imposing a fine of over Rs 66 crore on state-owned power generating company NTPC. The fine has been imposed on the company for its alleged failure to produce as per schedule for the coal mine in Chhattisgarh. Judge Yashwant Verma issued notice to the central government on the NTPC’s plea challenging the order and asked it to respond within 10 days.

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The court said that the matter needs to be considered. The action challenged is against a government company and the authority concerned has not given any reasons for dismissing the arguments made. The court, in its order dated July 8, said, “…the Center should reply in the matter within 10 days. Thereafter, the petitioner will have 48 hours to file the counter affidavit.

The judge said in his direction, “The respondent will be barred from taking any step in the matter till the next hearing of the case.” Production in the mine was affected and the recommendations of the inquiry committee were accepted. After that, on July 6, 2022, an order was issued and a fine of Rs 66,01,42,080 was imposed. This penalty has been imposed for non-compliance with the production schedule for the financial years 2019-20 and 2020-21.

“This decision (of the Centre) has been taken without considering the difficulties being faced by NTPC at the ground level. The reasons for not producing as per schedule are those which are not under the control of NTPC.” The next hearing of the matter will be on July 22.

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