Karnataka Emta Coal Mines Ltd vs Karnataka Power Corporation Limited on 19 September, 2023
In fact, in EMTA COAL
supra it is observed that the report of C&AG cannot be
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the sole basis for fastening the liability. As already
mentioned above, challenge to the same is negatived by
the Apex Court. There is absolutely no discussion in the
AGs report as to why it suggested for the levy of penalty
at the maximum rate of 10% when apparently FSA also
specified the minimum rate of ½ ie., 0.5%, as already
mentioned above. No explanation is offered by the KPCL
either in its pleadings or in the arguments as to what
prompted it to go for the extreme of 10%, besides placing
reliance on the AGs Report. There is no intrinsic material
much less the discussion in the said report too, that
justifies the suggestion for levying penalty at the
maximum rate.