New Delhi The government on Monday cancelled the allocation of another coal block over allegations of irregularities and deducted bank guarantees of two allottees for failing to develop the mines in time. The cancelled allocation was that of Gourangdih ABC block given to JSW Steel and Himachal EMTA.

The move follows the recommendation of the inter-ministerial group (IMG), which is scrutinising 29 blocks awarded to the private parties out of the total 58 that were issued showcause notices for delays in development. Some of these find mention in the Comptroller and Auditor General's recent performance audit report on captive coal blocks.