The Delhi High Court has upheld the government's decision to reject winning bids submitted by Naveen Jindal-led Jindal Steel & Power Ltd for two coal blocks.
"The decision cannot be termed as arbitrary or whimsical. We do not find any error in the decision-making process and that is all that we have to see. There is also no evidence of any mala fide,” an HC bench court said in its order, rejecting the company's claim over the coal blocks.
The court, however, asked the government to reconsider in six weeks its decision to allot the two blocks to Coal India Ltd.
The government had in March 2015 rejected Jindal Power's best bids for Gare Palma IV/2&3 block and Tara block that received low bids as compared to other blocks. The two Gare Palma blocks were given to Coal India for operations.
Jindal Power challenged the government's move in the Delhi High Court.