Of the 214 blocks, 172 mines that are not in production have been terminated with immediate effect.
Cancellation of the remaining 42 blocks that have commenced production will take effect in March 2015.
Four blocks that are allowed to continue operations include two operated by Reliance Power and one each by NTPC and Steel Authority of India
A report from Indian Comptroller and Auditor General in 2012 stated that the government has lost around $30bn in potential revenues due to allocating the resources without competitive bidding.
Commenting on the Supreme Court’s decision, Greenpeace India climate and energy campaigner Vinuta Gopal said: "Today’s landmark ruling is a strong message from the highest court in the country to the government and industry that the laws of the land cannot be circumvented and disregarded.
"And while coal is set to become more expensive, wind and solar energy are dropping rapidly in price. The government has a stark choice, whether to develop a pro-people, pro-green economic model, or stick with increasingly expensive, corrupt, dirty energy."
