After spending 31 months in Chennai's Puzhal prison, Ahmed Buhari is finally breathing free, as courts across the country quashed proceedings linked to his group company Coastal Energy.
Kindly note the image has been posted only for representational purposes.Photograph: ANI Photo
Key Points
- Ahmed Buhari secured legal relief after multiple courts quashed cases linked to alleged inferior quality coal supplies.
- Buhari spent over 31 months in Chennai's Puzhal prison before receiving bail without formal charges being filed.
- The Madras high court and special CBI court ultimately closed proceedings involving Coastal Energy and associated entities.
Industrialist Ahmed Buhari, founder of the Coal and Oil group, is today a much-relieved man.
After spending 31 months in Chennai's Puzhal prison, Buhari is finally breathing free, as courts across the country -- the latest being the special court for Central Bureau of Investigation cases -- quashed proceedings linked to his group company Coastal Energy.
The case against Buhari centred on allegations that Coastal Energy supplied inferior quality coal to thermal power major NTPC.
With the latest court order, multiple cases filed against Buhari and his associates by the Directorate of Revenue Intelligence, CBI and Enforcement Directorate have now been quashed by various judicial forums, including the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai, the Delhi high court, and the Madras high court.
Arrest, Bail and Acquittal
Buhari was arrested on March 3, 2022 in a case involving the alleged supply of inferior quality coal to NTPC.
Several bail applications filed on his behalf were rejected by various courts, despite the CBI not filing a charge sheet in the predicate offence.
After spending over 31 months in custody, Buhari was finally granted bail on October 24, 2024, even though no formal 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, on April 28, 2026, closed all charges against Buhari and his associates.
According to Buhari, the prosecution failed to prove that inferior quality coal had been supplied to NTPC.
"The quality of coal is tested at various stages. The coal supplier is paid only after the quality testing is done and the results are satisfactory," Buhari said.
Buhari noted that the Supreme Court has recently been deliberating on compensation in cases where individuals are acquitted after spending considerable periods in custody without formal charges being filed. He added that the apex court has also directed the Law Commission to recommend reforms in such matters.
'It was a challenging phase for the whole family'
Reflecting on his prison term, Buhari said: "It is said prison can make or break a person. One has to be mentally strong and have mental stability. Those who think that he/she can make it come out as a much stronger person."
According to Buhari, many people who had been close to him before his arrest disappeared during the difficult phase, barring a few loyal associates.
His family, he said, silently endured the social stigma while his children faced awkward questions and remarks from friends.
"It was really a challenging phase for the whole family," Buhari told this reporter.
Buhari thanked the various courts for disposing of the cases relatively quickly.
The Legal Battle Continues
However, Buhari's court battle is far from over. He is now fighting to regain control of his 1,200 MW thermal power company Coastal Energen before the National Company Law Appellate Tribunal (NCLAT).
Located in Tuticorin, the power plant was conceived as a forward integration venture for Buhari's business interests.
"I wanted to do something in and for Tamil Nadu and hence decided to locate the plant in Tuticorin. We could have set up the project in any other state. In fact, another state was ready to offer land for the project," Buhari said.
Born in Hong Kong, Buhari completed his schooling in Chennai before obtaining bachelor's degrees in marketing and finance from Bentley College in Boston, USA, and a master's degree in shipping, trading and finance from City University Business School in London.
According to Buhari, delays in securing funds from banks for the expansion of the power project pushed the company into financial distress.
Challenge to Coastal Energen's Insolvency Process
Buhari has challenged the Corporate Insolvency Resolution Process of Coastal Energen, under which the company was taken over on August 30, 2024, while he was still in custody.
On September 6, 2024, the Chennai bench of the National Company Law Appellate Tribunal 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 maintenance of status quo.
However, the Supreme Court subsequently stayed the NCLAT order and, on October 31, 2025, directed the appellate tribunal to complete the hearing within two months.
The matter is currently sub judice before the NCLAT.
"The next hearing will be on July 2, 2026," Buhari said.
Could Coastal Energen Become Another Appu Hotels Case?
The outcome of the case is being keenly watched.
Could the Coastal Energen insolvency case turn out to be another Appu Hotels matter, where the NCLAT set aside the sale process and restored the hospitality company to its original promoters?
"I have faith in the judicial system," Buhari said.
In the Appu Hotels case, the NCLAT set aside the National Company Law Tribunal's approval of the Rs 423 crore bid by M K Rajagopalan of the MGM Healthcare group for Appu Hotels, which owned five star hotels in Chennai and Coimbatore.
The Supreme Court later upheld the NCLAT ruling, resulting in Appu Hotels being restored to its original promoters.
IMAGE: Ahmed Buhari. Photograph: Venkatachari Jagannathan
Questions Raised Before the NCLAT
Buhari's appeal before the NCLAT raises several questions, including:
- Whether the successful resolution applicant satisfied the prescribed technical and financial eligibility criteria.
- Whether due diligence under the Insolvency and Bankruptcy Code was completed within the mandatory timelines.
- Whether confidential documents were shared with entities that were not formally eligible participants.
According to Buhari, these issues strike at the core of transparency within the insolvency resolution framework.
He said the matter has been receiving regular hearings before the NCLAT Chennai bench following the Supreme Court's October 31, 2025 order directing that a common order be passed 'within a period of two months from today'.
"I am confident of getting back the power plant -- my baby. I have faith in the legal system," Buhari said.
Buhari is now also working towards promoting startups through colleges and helping fund promising ventures.
Venkatachari Jagannathan can be reached at venkatacharijagannathan@gmail.com