TOI has reported that Indian Supreme Court, in its judgment of December 1, has termed e auction of coal by Coal India Limited as a misuse of CIL's monopoly status to seek the highest price rather than fulfilling its constitutional goals and have ordered stoppage of the same.

The judgment said that roughly 95% of coal is made available to the core sector at a notified price or roughly Rs 1155 PMT while non core linked consumers and traders which procure though e-auctions are forced to pay Rs 1,660PMT to 1,900PMT. It observes that despite a government of India’s office memorandum, promising sale of coal to linked consumers at an average e-auction rate, sale to linked consumers is being made at the highest bid price and not average bid price. Additionally, while e-auctions were introduced to make coal available to non core sector and traders, large core sector companies continue to be major players with high bids that compromise small scale industries' survival.

The judgment said "The methodology for allocation of coal to a bidder of e-auction is thus, inequitable, irrational and fortuitous."

The report quotes Mr PS Bhattacharyya CMD of CIL as confirming that coal e-auctions had been discontinued for the next three to four days and saying that "We are not clear about the interpretation of the judgment. It will need to be discussed with lawyers and the coal ministry. Till then, the e-auctions have been deferred.”