Prakash Industries Limited v. Directorate of Enforcement & CBI — Coal Block Allocation and Money Laundering

Hearing12 Jan 2026

Supreme Court appoints new special judge for coal block allocation scam trials

January 2026: Supreme Court appointed Ms. Sunena Sharma as presiding Special Court Judge to replace retiring Judge Sanjay Bansal in ongoing coal block allocation trials. CJI Surya Kant bench noted ongoing trials related to coal block scam cases continue.

Explanation in simple terms

What:: The Supreme Court appointed a new judge to preside over the ongoing coal block allocation scam trials.
Who:: The Supreme Court bench led by Chief Justice of India Surya Kant appointed Ms. Sunena Sharma as the new Special Judge.
When:: Reported on 12 Jan 2026.
Where:: Special Court for Coal Block Cases at Rouse Avenue in Delhi.
Why:: The previous judge, Sanjay Bansal, is retiring from his position.
What it means:: Ms. Sunena Sharma will now oversee the remaining legal proceedings for these cases.

LiveLaw

Judgment3 Nov 2025

Delhi High Court: Appreciation of share value from illegal coal block activity constitutes proceeds of crime

November 2025 judgment (LPA 102/2023) by Delhi High Court Division Bench upheld ED's provisional attachment order worth ₹122.74 crores against PIL. Court held that artificial share price inflation caused by false BSE disclosure about coal block allocation, followed by preferential share sales, generates proceeds of crime attachable under PMLA.

Explanation in simple terms

What:: The High Court decided that money gained from increasing share prices through false information is illegal.
Who:: Prakash Industries Limited is the company involved, the Directorate of Enforcement is the government agency, the Central Bureau of Investigation is the investigative agency, and the Delhi High Court is the court.
When:: November 2025 judgment.
Where:: Delhi High Court and Rouse Avenue, Delhi.
Why:: The court ruled that inflating stock prices through dishonest disclosures about coal mining permits creates criminal profits.
What it means:: The court confirmed the government can temporarily seize assets belonging to the company.

Bar and Bench

Judgment17 Oct 2025

Delhi High Court Division Bench judgment on coal allocation as property under PMLA

Court held coal block allocation letter constitutes 'property' under PMLA when obtained through misrepresentation/fraud leading to proceeds of crime. ED justified in attaching value of coal extracted.

Explanation in simple terms

What:: A court ruled that coal allocation letters obtained through fraud count as illegal property.
Who:: The Delhi High Court issued the judgment against Prakash Industries Limited, which is investigated by the Enforcement Directorate and the Central Bureau of Investigation.
When:: Reported on 17 Oct 2025.
Where:: Rouse Avenue, Delhi.
Why:: The court decided that obtaining coal blocks through misrepresentation leads to money laundering, allowing the agency to seize the value of extracted coal.
What it means:: The Enforcement Directorate is now legally justified in attaching the value of coal extracted by the company.

Bar and Bench

Judgment17 Oct 2025

Delhi High Court upholds ED attachment in PIL coal block case

Division Bench (Justices Anil Kshetarpal and Harish Vaidyanathan Shankar) allowed ED appeals, quashing single judge's cancellation of Provisional Attachment Orders (PAO). Court held coal block allocation obtained through fraud constitutes proceeds of crime under PMLA.

Explanation in simple terms

What:: The high court allowed the enforcement agency to keep seized property linked to a coal mining case.
Who:: The Delhi High Court judges ruled against Prakash Industries Limited, which is involved in a money laundering investigation.
When:: Reported on 17 Oct 2025.
Where:: Delhi High Court and Rouse Avenue Special Court.
Why:: The court ruled that obtaining coal mining rights through fraud creates illegal money that justifies seizing property.
What it means:: The court reversed an earlier decision that had canceled the seizure of the company's assets.

LiveLaw

Judgment17 Oct 2025

Delhi High Court upholds that coal block allocation obtained through fraud constitutes proceeds of crime under PMLA

October 2025 Delhi High Court judgment (LPA 588/2022) held that coal block allocation obtained through misrepresentation/fraud amounts to proceeds of crime under PMLA. Division Bench allowed ED appeals challenging a 2022 single judge order, holding PIL's fraudulent allocation qualifies as property under PMLA and financial benefits from extraction/sale are proceeds of crime.

Explanation in simple terms

What:: The Delhi High Court decided that money gained from coal mines obtained by cheating is criminal property.
Who:: Prakash Industries Limited is the company, the Enforcement Directorate is the government agency, and the Delhi High Court is the court.
When:: Reported on 17 Oct 2025.
Where:: Delhi High Court, Rouse Avenue, and Delhi.
Why:: The court ruled that the company used fraud to get coal blocks, making profits from them illegal assets.
What it means:: The court reversed a previous order, confirming that financial gains from these coal blocks count as criminal money.

LiveLaw

Prakash Industries Limited v. Directorate of Enforcement & CBI — Coal Block Allocation and Money Laundering

Case details

Updates

Similar Cases

State vs Satyendar Jain and 13 others — money laundering and corruption cases

State vs Debraj Chakraborty — Extortion, land-grab and related offences

State vs. Pankaj Agarwal & others — IDFC First Bank Rs 657-crore scam

Minister Nagendra — Valmiki Scam Case

State vs Lalu Prasad Yadav and others — IRCTC scam case

State vs Lalu Yadav and family — Land-for-jobs case

Discussion

Supreme Court appoints new special judge for coal block allocation scam trials

Delhi High Court: Appreciation of share value from illegal coal block activity constitutes proceeds of crime

Delhi High Court Division Bench judgment on coal allocation as property under PMLA

Delhi High Court upholds ED attachment in PIL coal block case

Delhi High Court upholds that coal block allocation obtained through fraud constitutes proceeds of crime under PMLA

CBI registered FIR against PIL for coal block misrepresentation and diversion

Supreme Court reconstitutes bench for coal block allocation cases after justice recusal

Supreme Court issues notice on PMLA bar applicability in coal block cases

Provisional Attachment Order rests merely on an assumption of ED; Delhi High Court quashes Order passed by ED being arbitrary and illegal