The Children’s Investment Fund Management (TCI) has sought Rupees 1500 crores as compensation, from state-owned Coal major, Coal India Ltd (CIL) for allegedly under-pricing coal that resulted in huge revenue losses, as per The Financial Express newspaper report.
The Children’s Investment Fund has already filed a petition against the miner in Calcutta High Court. It is a landmark case as TCI sued the board of Coal India on a personal level, which would bankrupt them, given that the opportunity losses are 2,15,000 crores rupees pre-tax.
TCI is effectively seeking compensation close to 1500 crore rupees as we own close to 1% (in Coal India) – Oscar Veldhuijzen, Partner at TCI
Mr. Veldhuijzen said. “The board will be liable for the full 2,15,000 crores rupees (revenue loss) to all shareholders,” and the government, which owns 90% of the company, “will be the biggest beneficiary”.
The lawsuit was filed against the directors of Coal India for breach of their fiduciary duties and for having failed to perform their functions “with adequate care and skill,” the Fund said.
The Children’s Investment Fund has been persuading the coal ministry for the last three months to hike coal prices.
Today, shares of Coal India had Thursday closed at 359.30 rupees up 1.6% at NSE.
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