Legal and Economic Consequences of the Coal Scam Case, 2014

Abstract

The paper analyzes the infamous 'coal scam' case, where the Supreme Court's verdict became a subject of heightened criticism and controversies. The article highlights the significance of the case on the legal and economic fronts and how the two of them are interlinked. The Supreme Court's decision of quashing the licenses was questioned on the grounds of the methodology applied for determining the losses incurred. The economic implications of the same have been far-reaching, leading to reduced efficiency and productivity in the entire industry. This was followed by a ripple effect in the banking industry, foreign investment, and ultimately the economic slowdown of the nation. The paper elucidates upon the incentives involved, the impact of this decision and proposes an alternate inference that could've potentially mitigated the damaged.