In a setback for Coal India, the Supreme Court rejects the company's plea that Competition law does not apply to it because of the Coal Mines Act.

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In 2014, the Competition Commission of India held that Coal India is guilty of abuse of dominant market position. In 2016, the erstwhile Competition Tribunal had upheld the Competition Commission of India order against Coal India. Coal India had then challenged the Tribunal order in Supreme Court and argued that owing to Coal Mines Act, its operations were outside the purview of the Competition Act.

The Competition Commission of India had slapped a penalty of Rs 1,773 crore, while the Competition Tribunal had relaxed the penalty to Rs 591 crore. To Coal India's disappointment, the Supreme Court on June 15th holds that Competition law applies to Coal India.

The stock is trading 0.26 percent lower on the exchanges at 11:30 am on June 15th.