The Special Investigations Unit (SIU) has secured a high court order setting aside a contract worth R3.7-billion between the formerly Gupta-owned mining group Tegeta Exploration & Resources and State power utility Eskom, according to Ministry of Justice and Correctional Services.

According to the ministry, the agreement entered into in March 2015 for the supply of coal to Majuba power station for a decade was declared unlawful, invalid and of no legal force. At the time Tegeta was owned by the Gupta family. The company is currently in business rescue.

Minister of Justice and Correctional Services, Ronald Lamola, said in a statement on Friday that the fight against corruption would "not be won without action by law enforcement agencies".

"Maladministration often lays the basis for corruption to thrive at a great expense to the fiscus and ultimately service delivery and we are encouraged when efforts to recover resources of the people of South Africa are intensified and yield results," said Lamola. 

The ministry said the court order further grants the SIU leave to institute legal proceedings.