Manohar Lal Sharma v. Prime Minister & Others (Coal Allocation Case)

In 2025, the Indian Supreme Court heard a public interest litigation filed by advocate Manohar Lal Sharma, challenging the arbitrary and non-transparent allocation of coal blocks by the central government. The petition named the Prime Minister and coal ministry officials as respondents, alleging that the process bypassed competitive bidding, caused significant revenue loss to the exchequer, and involved corrupt practices. The court examined the allocation mechanism under the Mines and Minerals (Development and Regulation) Act and found violations of fairness and accountability. This case revisited issues from the historic 2014 coal scam verdict but focused on allocations made under a later policy. The Supreme Court ruled the allocations illegal, cancelled them, and ordered immediate re-auction through a transparent bidding process, reinforcing the principle that natural resources must be distributed in a fair and non-discriminatory manner.

The Supreme Court declared the contested coal block allocations illegal and void, cancelled the licences, and directed the government to conduct fresh auctions within a strict timeline. It also ordered a time-bound investigation by the Central Bureau of Investigation into the allotment process to identify and prosecute any criminal wrongdoing.

The legality of allocating coal blocks without competitive bidding; whether the government's procedure was arbitrary and violated constitutional principles of equality; and the extent of judicial intervention required to remedy the loss to the public treasury and ensure accountability for potential corruption.

The judgment strengthened public confidence in the judiciary’s role as a check on executive power over natural resources. It accelerated mining sector reforms, established stricter transparency norms for resource allocation, and served as a powerful deterrent against arbitrary administrative actions, promoting a more investor-friendly and rule-based economic environment.