ED Moves Supreme Court Against Refusal To Defer Order On Charge In Jindal Steel-Linked Coal Block Case

The Directorate of Enforcement has moved the Supreme Court against a trial court order refusing to defer the order on charge in a money laundering case linked to allocation of the Amarkonda Murgadangal coal block, in which Jindal Steel & Power Ltd. and other accused are facing prosecution.

The petition challenges a March 25, 2026 order of the Special Judge (PC Act) (CBI), Coal Block Cases, Rouse Avenue Courts, New Delhi, dismissing the ED's application under Section 346 of the Bharatiya Nagarik Suraksha Sanhita.

A Bench of Chief Justice Surya Kant and Justice Joymalya Bagchi will likely hear the matter on May 15.

The ED had sought deferment of the order on charge before the Special Court pending the Supreme Court's decision in connected matters on whether a coal block allocation letter itself constitutes “property” and “proceeds of crime” under the Prevention of Money Laundering Act.

In its plea, the ED argued that the trial court ought to have deferred the matter because the same legal issue is already pending before the Supreme Court.

The Delhi High Court in the Hi-Tech Mercantile matter on October 17, 2025, and in the Prakash Industries matter on November 3, 2025, held that coal block allocation letters could constitute property and proceeds of crime under the PMLA. On January 16, 2026, the Supreme Court issued notice and stayed operation of those judgments pending consideration of the connected SLPs.

The Special Court held that the order on the charge could not be deferred merely because similar legal issues were pending before the Supreme Court. It noted that no stay operated against the continuation of the present case.

According to the petition, the case relates to allocation of the Amarkonda Murgadangal coal block on January 17, 2008, to Jindal Steel & Power Ltd and Gagan Sponge Iron Pvt. Ltd.

The CBI registered an FIR on June 10, 2013, alleging offences under Sections 120B and 420 of the IPC, along with provisions of the Prevention of Corruption Act. The ED registered its ECIR on April 11, 2014.

The ED later filed a prosecution complaint on July 13, 2018, alleging that the allocation was secured through misrepresentation and criminal conspiracy.

The agency alleged that proceeds of the crime included alleged quid pro quo payments of Rs 2 crore routed through group entities, along with gains arising from subsequent financial transactions.

The petition has been filed through Advocate on Record Arvind K. Sharma.