In the PIL, it has been alleged that while the loss of revenue to the government due to this illegal mining is to the tune of Rs 28,028 crore, the CAG audit estimated a loss of Rs 2,468 crore as the government failed to collect penalty from the private company.
The division bench comprising chief justice issued notice on a PIL by Lok Sampati Samrakshan Samiti president Ravindra Singh.
Rajasthan government on January 20, 2006 approved the 1,000 MW lignite based power plant in favour of M/s West Power with various terms and conditions which included determination of in principle cost fuel cost and tariff by Rajasthan Electricity Regulatory Commission.
But by a share purchase agreement on February 10, 2006, JSWEL (JSW Energy Limited) had acquired 100% of the shareholding in West Power Company.
M/s West Power later informed another company namely Barmer Lignite Mining Company Limited comprising a consortium of JSWEL and SWML (South West Mining Limited), a JSW group company.
The petitioner alleged that the action of the government of India, government of Rajasthan and Rajasthan State Mines and Mineral Limited of handing over the control of lignite mines/blocks including lignite and its by products to private companies was in contravention to the allotment letter, Coal Mines Nationalization Act, 1973 and MMDR Act, 1957 and the judgment of the apex court.