The Special Court for CBI Cases (Spl. CC No. 1/2022), on April 28, 2026, quashed the last pending case linked to Ahmed Buhari, promoter of Coastal Energy. With this order, multiple cases filed against him and his associates by the Directorate of Revenue Intelligence (DRI), Central Bureau of Investigation (CBI), and Enforcement Directorate (ED) have now been quashed by various judicial forums, including the CESTAT, Mumbai, the Delhi High Court, and the Madras High Court, respectively.
Ahmed Buhari, promoter of Coastal Energy / Coastal Energen, a 1,200 MW Independent Power Producer (IPP) based in Tuticorin, was arrested on March 3, 2022, in a high-profile case involving alleged supply of inferior coal to Public Sector Undertakings (PSUs). Multiple bail applications filed on his behalf were rejected by various courts, despite no charge sheet being filed by the CBI in the predicate offence.
After spending over 31 months in custody, he was finally granted bail on October 24, 2024, even though no charges had been filed against him.
Subsequently, the Madras High Court quashed the case on October 7, 2025. Thereafter, the Special Court for CBI Cases took cognisance of the matter and closed all charges against him and his associates on April 28, 2026.
The Supreme Court has recently been deliberating on compensation in cases where individuals have been acquitted of all charges after spending a considerable amount of time in custody without any formal charges being filed. The Court has also directed the Law Commission to recommend reforms in such matters.
Meanwhile, in a separate matter, Ahmed Buhari has challenged the Corporate Insolvency Resolution Process (CIRP) of Coastal Energen, which was taken over by the Dicky–Adani consortium on August 30, 2024, while he was in custody.
On September 6, 2024, the Chennai Bench of the National Company Law Appellate Tribunal (NCLAT) observed that the matter involved intricate questions of law regarding the eligibility of the Successful Resolution Applicant. The Bench directed that the matter be heard on merits and ordered status quo. However, the Supreme Court subsequently stayed the NCLAT order and, on October 31, 2025, directed the NCLAT to complete the hearing within two months.
The matter is currently sub judice before the NCLAT.
