Coal Ministry cancelled the Allotment of Coal Block to Shree Bhaidyanath Ayurved Bhavan

The Coal Ministry on 1 June 2011 cancelled the allotment of a coal block to Shree Bhaidyanath Ayurved Bhavan (SBABL) over the company's failure to develop it in a timebound manner for captive use. Decision to de-allocate the coal block was taken following the recommendations by a Coal Ministry panel, which reviewed the progress made by steel, power, cement and other firms in developing 88 coal and lignite blocks allotted for captive use. The Bhandak (West) coal block was allocated to the firm in 2003 to meet the coal requirement for its paper mill, located in Nagpur, Maharashtra.

The Coal Ministry had in 2010 served notice to SBABL for its failure to develop coal blocks awarded to it within the timeframe stipulated in the mining agreements. The company had also furnished its reply to the showcause notice. A committee set up in this regard then examined the reply of the company and in turn recommended to the government to de—allocate the coal block allocated to the company.

the Warora West (North) coal block allocated to Bhatia International Limited to meet the coal requirement for its 0.51 million tonnes per annum sponge iron plant in Chandrapur, Maharashtra was also taken away.

The government announced on 30 May 2011 its decision to de-allocated three coal blocks- Ansettipalli, Punukula—Chilka and Pengedappa which were allocated to Andhra Pradesh Power Generation Corporation to meet its coal requirement for captive use in specified end use projects
To weed out non-serious players, the government had issued notices to 84 coal and four lignite block allocatees in 2010 for not developing the same within the stipulated timeframe and sought explanations as to why the blocks should not be cancelled.