Jaipur – A Jaipur commercial court judge who passed a ruling against an Adani Group-led company in a long-running coal transport dispute was transferred the very same day, sparking questions about the timing. The case involves a major coal mining deal from Chhattisgarh meant to supply power plants in Rajasthan.
The story goes back to 2007 when the central government gave a coal block in Chhattisgarh’s Hasdeo Arand forest area to Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL), a state-owned power company. The block, known as Parsa East and Kente Basan, has huge coal reserves – more than 450 million tonnes. RRVUNL soon teamed up with Adani Enterprises in a joint venture. Adani holds 74% stake, while RRVUNL has 26%. They formed a company called Parsa Kente Collieries Limited (PKCL) to mine the coal and send it to Rajasthan’s power plants.
How the Deal Was Supposed to Work
Under the agreement signed in 2008, called the Coal Mining and Delivery Agreement, PKCL had to mine the coal and deliver it by rail to the power plants. The contract fixed a price per tonne, and PKCL was responsible for building railway sidings – special tracks connecting the mine to the main railway line. Road transport was not mentioned at all in the original deal.
Mining started in March 2013, but the railway sidings were not ready for years. As a temporary fix, both sides agreed to move coal by road to the nearest railway stations. A transport company was hired for this. But PKCL billed all the road transport costs to RRVUNL. Over time, this added up to more than Rs 1,400 crore. RRVUNL paid these bills, worried that any delay in coal supply could cause power shortages in the state.
Things turned sour in 2018 when PKCL asked for interest on late payments for these road costs. RRVUNL said no, calling it unfair. In 2020, PKCL went to court in Jaipur seeking the interest amount, around Rs 65 crore.
The Court Ruling That Shook Things Up
The case went to the commercial court in Jaipur. Judge Dinesh Kumar Gupta heard it. On July 5, 2025, he ruled in favour of RRVUNL. He said the road transport costs were not part of the original contract, and PKCL had no right to bill them to the state company. The judge called it hard to believe that PKCL did not have to pay any part of those costs itself.
Judge Gupta fined PKCL Rs 50 lakh. He also asked the Rajasthan government to request a full audit by the Comptroller and Auditor General (CAG) of the entire coal deal. This could have opened up more details about the partnership.
But just 13 days later, on July 18, 2025, the Rajasthan High Court stayed the lower court’s order after PKCL appealed. The fine and the CAG audit direction are on hold now. The next hearing in the High Court is set for late January 2026.
The Sudden Transfer of the Judge
On the same day the ruling came out – July 5, 2025 – the Rajasthan High Court transferred Judge Dinesh Kumar Gupta to Beawar district, about 200 km away from Jaipur. Many people have raised eyebrows over this timing. Questions are being asked if it was just a routine transfer or linked to the case against a big company like Adani.
When asked, the judge did not comment. The High Court and the state government have not explained why the transfer happened that day.
An expert on the power sector, Priyanshu Gupta, who studies these deals, said: “The problem with this model has always been that it shifts all the risk to the public sector while private companies get good mines at low prices. A private firm cannot ask for a sweeter deal.”
RRVUNL, in its court papers, said it paid the extra bills because stopping coal supply would hurt the state’s economy badly. They called PKCL’s demands “arm-twisting” and said the company was making wrongful gains.
Background of the Coal Block and Environmental Concerns
The Hasdeo Arand forest is one of India’s densest forests. Many tribal communities live there. Over the years, mining in this area has faced protests over tree cutting, displacement of villages, and harm to wildlife.
What the Companies Say
Adani Enterprises and RRVUNL were asked for comments on the court ruling and the charges. They have not replied yet.
This deal is one of Adani’s biggest in coal mining under the Mine Developer and Operator (MDO) model. Adani now has many such contracts across India.
The case highlights issues in public-private partnerships for coal, where state companies bear risks but private partners get major benefits.
As the matter moves to the High Court, people are watching closely. Will the CAG audit happen? Will the extra charges be refunded? These questions remain open.
Frequently Asked Questions (FAQs)
1. What is the main dispute in this Adani-RRVUNL case?
The dispute is about who should pay for road transport of coal when railway sidings were delayed. The contract said delivery by rail, with PKCL responsible for sidings. But PKCL billed over Rs 1,400 crore road costs to RRVUNL, which the Jaipur court said was wrong.
2. Why was a CAG audit ordered?
The judge felt the deal needed a full check because of the huge extra billing outside the contract. CAG audits government deals to ensure no loss to public money. But the High Court has stayed this for now.
3. What happened to the judge who ruled against Adani’s firm?
Judge Dinesh Kumar Gupta was transferred to Beawar on the same day as his July 5, 2025 ruling. No official reason given, and it has raised questions about timing.
4. Is the lower court order still in force?
No. The Rajasthan High Court stayed it on July 18, 2025. The fine of Rs 50 lakh and CAG audit are paused. Next hearing in late January 2026.
5. How does this affect power supply in Rajasthan?
The coal supplies power plants like Chhabra. Any dispute could risk shortages, which is why RRVUNL paid the extra bills earlier to avoid problems.
6. Are there environmental issues with this mine?
Yes. The mine is in Hasdeo Arand, a rich forest. Locals and activists worry about tree loss, village displacement, and harm to elephants and other wildlife.
7. Has Adani responded to the allegations?
No public response yet on this specific ruling. Adani Group often says its deals follow all rules.