Meghalaya Govt yet to receive proceeds from successful bidders of coal auction in 2023

Justice BP Katakey told the government to allow the extension for a reasonable period of time to make the payment of entire auction value, if necessary in instalments

Pic used for representative purpose

Justice (retired) BP Katakey, who heads the single member committee constituted by the High Court of Meghalaya has informed that transportation of inventorised coal from three districts of South West Khasi Hills, West Khasi Hills and South Garo Hills, to designated depots is almost completed.

However, in terms of the East Jainita Hills district, Justice Katakey said that out of the 1.3 lakh metric tonnes of coal lying on surface, over 75000 metric tonnes are still yet to be transported to the designated depot.

Maintaining that necessary instructions has been given to the East Khasi Hills District Deputy Commissioner, Justice Katakey stated, “This 70,000 (metric tonnes of coal) I have asked the Deputy Commissioner to complete the process, if the coal owner did not come forward for transportation, I have instructed the Deputy Commissioner in terms of the Honourable High Court order, that you should verify the existence of this 70000 and get it transported to the designated depot within 15 days from now. So that we can have the entire inventorised coal in the designated depot under the control of the state government.”

Justice Katakey maintained that coal was auctioned twice in 2023 and the sale too was good, but the full payment is yet to be made by the then successful bidders.

Sharing details Katakey said, “In 2023 there were two auctions- one was on 14/3/2023 where 4, 42, 800 mt was put to auction, out of that 3, 38, 490 mt were sold in auction. THe entire bid value in respect of Rs 2,53, 270 has been paid by the successful bidders but the lifting was only in the respect of 1, 93,714. So therefore out of the 3,38,490 mt sold on 14/3/2023 almost Rs 1 lakh 45 thousand, they have not paid anything except the earnest money deposit.

On 3/11/2023 auction we have put to auction some quantity which were not lifted is added to this auction, total quantity was 5,92,646 mt. Sale was very good 5,88,956 mt of coal was sold. But the full payment in respect of only Rs 1, 48, 353 has been made. That means almost Rs 4, 40, 000 sold in auction (to be received from auction), the bidders are yet to pay and generally their stand is that the market is down so we are unable to pay it, please extend the time.”

Justice Katakey also informed that he has already informed the government to allow extension for time of payment by the successful bidders of 2023.

He said, “So I have told the government to allow the extension for a reasonable period of time to make the payment of entire auction value, if necessary in instalments and with a notice to them that if you do not pay the last instalment entire amount would be forfeited to the state and the coal would be put to reauction.”

“Almost 5.8 lakh mt coal was put to auction and out of that almost 5.5 lakh was sold, sale was very good but the lifting was poor. Because the auction purchasers are not lifting it on the ground basically that the market is down. We cannot wait for them to do that. There is a limit to everything. We can extend time but there has to be a reasonable period and not for an indefinite period of time. That means they are auction purchasers and the state government is protecting their property,” Justice Katakey further said.

Meanwhile, Justice BP Katakey added that he would recommend the government for a drone survey with the help of the NESAC (North East Space Application Centre), for finding if any more coal is available in the coal producing areas.

“Thereafter we are proposing to have a drone survey, we also want to take the assistance of the NESAC (North East Space Application Centre), we have invited them for the next meeting to explore the possibilities of satellite imagery of the coal producing areas, to find out whether any more coal is available.

If we find the availability of any mine coal on land that is illegally mined, the entire coal have to be seized and no amount to be paid to the coal owners. Entire sale proceed will go to the state government for the benefit of the people of Meghalaya,” Katakey said

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