GOVERNMENT OF INDIA

MINISTRY OF COAL

LOK SABHA

UNSTARREDQUESTION NO: 20

ANSWERED ON: 02.05.2012

LEGAL ACTION AGAINST CIL 

(a) whether U.K. based Childrens Investment Fund has threatened to take legal action against Coal India Limited (CIL) ; 

(b) if so, the facts in this regard;

  (c) the details of allegations levelled by the said organiation against CIL ; 

(d) the reaction of the Government to the said allegations alongwith the action taken proposed to be taken by the Government in this regard ?

ANSWER

(a) & (b): Childrens Investment Fund , a minority shareholder, had indicated that it would take legal action against the individual Coal India Limited (CIL) Board Members for breach of fiduciary duties. 

 (c): The points raisedallegations levelled were:-   

(i) underpricing of Fuel Supply Agreement coal as compared to market levels; 

  (ii) slow implementation in setting up of washeries;   

(iii) lack of action on prevalent theft of coal; 

  (iv) inefficiencies in underground mines; and   

(v) not achieving target production despite abundant reserves. 

 (d): The allegations levelled against CIL are relating to operational matters of CIL and CIL needs to address them as per the framework set up by the company to handle investor grievances.