Coal Blocks Allocation Scam

A CAG report says the government lost Rs 10.67 lakh crore by not auctioning coal blocks between 2004 and 2009

According to a report in 'The Times of India', 155 coal blocks were given to commercial entities without auction between 2004 and 2009.
The estimated loss is six times higher than the presumptive loss figure of Rs 1.76 lakh crore for the 2G scam.
The 110-page draft report is expected to be tabled in Parliament after the Union Budget is passed.
Coal block beneficiaries include almost 100 private companies as well as some public sector units in industries such as power, steel and cement.

 

Coal Mining Scam in Madhya Pradesh, Chhattisgarh?

The company in question Prakash Industries is owned by Ved Prakash Agarwal, brother of Jai Prakash Agarwal, who runs a BJP-backed NGO Surya Foundation.
An investigation by the CBI shows that Prakash Industries, a heavyweight in the mining and steel sector, was allotted coal blocks in Chhattisgarh and Madhya Pradesh in connivance with officials from Coal and Steel ministries after submitting forged and fabricated documents.
In north Chhattisgarh's Korba district Prakash Industries limited emptied out the entire Chotia coal block ostensibly for expanding their sponge iron plant. The CBI investigation shows that the expansion never happened and that the company diverted nearly 50 per cent of the entire coal mined to the black market making thousands of crores.
The allegation is that Raman Singh's government in Chhattisgarh had been helping Prakash Industries to bid for more coal blocks. However, Raman Singh brushed aside such allegations.
The excise department inquiry shows that the company suppressed their production figures and clandestinely removed coal into the black market. They pointed at connivance between officials of coal and steel ministry and Joint Plant Committee. They levied a fine of more than Rs 90 crore. The central excise and customs department had even recommended criminal action against the company and their political connection ensured that no action was taken either by the UPA at the centre or state governments in Chattisgarh and Madhya Pradesh.

Opposition seeks explanation over coal auction scam

When Lok Sabha met for the day Thursday March 22,2012, JD-U members were on their feet demanding immediate discussion on a report of the Comptroller and Auditor General on allocation of 155 coal acreages between 2004 and 2009 to some 100 companies.

The moment Speaker Meira Kumar called for the Question Hour, BJP and JD-U members trooped into the Well raising slogans against the government."Yeh Sarkar Kaali Hai (This government has been tarnished)" the opposition members chanted in the Well.With members unrelenting, the Speaker adjourned the House till noon.
Similar scenes were witnessed in the Rajya Sabha where Prakash Javadekar (BJP) said he had given notice for suspension of Question Hour to discuss the alleged scam.
"Sorry, the Question Hour cannot be suspended," Chairman Hamid Ansari said."You cannot raise the issue without the permission of the Chair," Minister of State in PMO V Narayanasamy said
The government has courted trouble over a CAG report While Samajwadi Party gave notice in Lok Sabha to discuss CAG report CPM too attacked the Govt.
According to the coal ministry, of the total 195 coal blocks allocated to both public and private firms over a decade, only 30 mines have begun production.

The Coal Ministry has asked the IMG to scrutinise the 13 coal blocks in which 14 companies are facing probe and 13 FIRs/charge sheets filed. Out of the 13 blocks, two have already been de-allocated.

“The IMG has been asked to make its recommendations in those cases also where the CBI has filed FIRs/charge sheets. Prominent among them include Sterlite Ltd., GMR, Arcelor Mittal, Navbharat Power Ltd., Mukund Steel and Vini Iron and Steel Udyog Ltd., Jindal Steel and power, Rathi Steel and Power, Pushp Steel and Mining and Jharkhand Ispat Pvt Ltd



Inter-Ministerial Group (IMG)
The IMG, headed by Additional Secretary (Coal) Zohra Chatterjee, has issued show-cause notices and advisories to 58 companies, including 25 private firms, for failing to develop the mines allotted for captive use within the given time-frame. Reliance Power, Tata Power, Hindalco, Grasim Industries, ArcelorMittal, GVK Power, Jindal Steel and Power and MMTC figure in the list.
The IMG is reviewing 58 coal blocks. It has been asked to submit its report in a time-bound manner, the latest by September 15,2012.

The CBI has registered 3 preliminary enquiries in connection with the scam - 

• allocations between 2006-09
• allocation between 1993 and 2004 and 
• those done to joint ventures

The CBI has also registered 13 FIRs related to allocations between 2006 and 2009

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The CBI has been directed by the SC to file a fresh status report by August 29,2013

On August 6,2013 the Supreme Court had directed the Centre to provide “full cooperation” to CBI in its probe in coal blocks allocation by providing it with all necessary information and files without any delay

Missing Files

CBI is seeking from the Coal Ministry 257 files related to coal blocks allocation which have gone missing thus hampering agency’s probe into alleged irregularities.

Out of 257 files, nearly 150 are of the period between 1993 and 2004 in which 45 coal blocks were allocated

The missing files are related to 13 FIRs registered by CBI in connection with allocations done during 2006-09. “We have written to Coal Ministry in May seeking files related to coal allocation scam. We have not received any response from them,” CBI Director Ranjit Singh told

The CBI would not be registering any case with regard to the missing files suo-moto and would wait a formal reply from the Ministry.“The files are of Coal Ministry. If they have gone missing, it is the obligation of the Ministry to file a criminal case. We can only proceed with the destruction of evidence case if we receive a formal response from the Ministry,”

Coal Ministry submits detailed report on missing files to CBI Monday Sep 16,2013

Nearly 150 files and documents were to be received by the CBI from the Coal Ministry

While hearing the case on August 29, 2013 the Supreme Court had directed the CBI to give a list of documents, files and information sought by it within 5 days to the Coal Ministry which, in turn, was to furnish them within 2 weeks

The Coal Ministry submitted to the CBI on Monday Sep 16,2013 a detailed report on the missing files pertaining to coal block allocations, said an official.

“We have sent the report to the CBI on Monday,” a Coal Ministry official said on the condition of anonymity.

Coal Minister Sriprakash Jaiswal did not make any comment on whether the files have been dispatched.

However, he said, “The instructions of the Supreme Court are being followed.”

CBI Files FIR Against 5 Companies

 

The CBI on Tuesday Sep 04,2012 after three months of internal probe registered 5 cases in connection with the alleged scam in allocation of coal blocks and conducted searches in nearly 30 places across the country.
The companies named in the FIR by the CBI are  -
1)Vini Iron and Steel
2)Nav Bharat Steel
3)JLD Yavatmal
4) JAS infrasrtucture of Abhijeet Group and
5) AMR Iron and Steel

4 Coal Blocks De-allocated; 3 Firms to Lose Bank Guarantee

 

The Coal Ministry on Thursday Sep 13,2012 said it accepted the recommendations of the Inter-Ministerial Group (IMG) and notified de-allocation of four blocks and deduction of bank guarantee in the case of three companies. 

SC Notice to Centre on Coal Block Allocations

 

The SC issued notice on Friday Sep 14,2012 to the Centre on alleged irregularities in coal block allocations today giving the government eight weeks to explain if it followed guidelines in allocating coal fields.

 

Turning down the Centre’s plea that the court should not go into the issue as it is being looked into by a Parliamentary committee, the apex court said “these are different exercises.” 

A bench of justices R M Lodha and A R Dave said the petition raised serious questions and “it requires explanation from the Government”. 

The SC order came on a public interest litigation by advocate ML Sharma who sought the scrapping of the allocation of all 194 coal blocks and a probe into irregularities in the allocation.

CBI ReceiveUntraceable Files List From Coal Ministry Wed Sep 18,2013

The CBI on Wed Sep 18,2013 received a fresh letter from the Coal Ministry giving details of files related to coal block allocations which remain untraceable in the ministry, paving the way for filing of FIR by the CBI

Note
CBI is looking for crucial records related to the ongoing 13 cases filed by it in connection with the coal blocks allocation scam

The Search Committee, headed by an Additional Secretary (Coal), and Secretary (Coal) S.K. Srivastava, had undertaken a hectic search for the files that extended to the Steel and Power Ministries, the Prime Minister’s Office (PMO) and the Department of Industrial Policy and Promotion

In the communication through Attorney General, CBI had listed out several records which the ministry had claimed that it has provided to the agency but were not handed over

The Coal Ministry had sent a tranche of documents along with the list of files and records which have been traced

SC Orders Central Govt to Produce Records on Coal Block Identification Wed Sep 18,2013

The Supreme Court on Wednesday Sep 18,2013 asked the Centre to produce all records and booklets of the Central Mine Planning and Design Institute Limited (CMPDIL) relating to identification of coal blocks so that it could proceed further in the hearing of the ‘coal block allocation case.’ 

A 3-judge Bench of Justices R.M. Lodha, Madan B. Lokur and Kurian Joseph, hearing petitions filed by advocate Manohar Lal Sharma and Common Cause and others, posted a series of questions to the Attorney General G.E. Vahanvati and said “unless the first step, the issue of identification of coal blocks was answered, we can’t proceed further.”

With the Attorney General seeking time, the Bench adjourned the hearing to Sep 24,2013 to enable the government to produce the relevant records