CESC may also join class-action suit against Coal India
Private sector power giant CESC Ltd is reportedly also mulling whether to join the class-action suit against Coal India Ltd (CIL).
Sources said that CESC would join the class-action suit filed by TCI Cyprus Holding against CIL if it got any hint in the documents that its interest as a consumer of the coal giant could get hurt due to the outcome of that particular case.
Speaking on the topic, the sources said, "CESC is now mulling whether to join the case or not. They will first go through the copies of the petition and replies filed by the parties in the TCI vs Coal India case to decide whether there is any merit in intervening."
CESC, the RP Sanjiv Goenka group's flagship company, generates and distributes power to Kolkata and its adjoining areas.
Damodar Valley Corporation (DVC) has already filed an application seeking the Calcutta High Court's intervention in the proceedings of the case.
In its suit, TCI alleged that CIL's linkage customers, including DVC, CESC and NTPC suffered an estimated loss of Rs 215,250 crore as the coal giant didn't sell coal at market rates to them. TCI also said that it also suffered an additional loss of Rs 9,942.18 crore due to decline in the value of its share holdings.
TCI made CIL, all of its seventeen directors, the Government of India (its largest shareholder) as well as its seven mining subsidiaries parties to the case.
The hearing for the class action suit has been scheduled for January 30, after CIL sought some time to file its reply.