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LATEST NEWS UPDATES | CAG report on mining submitted to Chhattisgarh government-Suvojit Bagchi

CAG report on mining submitted to Chhattisgarh government-Suvojit Bagchi

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published Published on Mar 12, 2013   modified Modified on Mar 12, 2013
-The Hindu

Raipur: The Comptroller and Auditor-General (CAG) has completed the process of handing over four audit reports to the Chhattisgarh government.

The first report was submitted on March 5 and the last on Monday, said a press release from the office of the Accountant-General (Audit) here.

The CAG’s report on commercial mining of coal blocks in Chhattisgarh last year indicated that the former BJP president, Nitin Gadkari’s close aide, Ajay Sancheti, had allegedly received more than Rs. 1,000 crore in undue benefits from the policies of the State government. The allegation snowballed into a major issue, resulting in Mr. Gadkari’s resignation. The Accountant-General (Audit) handed over the reports to the Finance Department, the release said. The first one deals with the State’s fiscal deficit and surplus investment in its corporations, loans, borrowings and advances. The second, ‘Assessment, Levy and Collection of Major and Minor Mineral Receipts,’ deals with receipts and royalties from mining.

“Any report on the Mines and Minerals Department is very crucial as it deals with mega scams. It was this report last year that implicated a Nagpur-based company. The company, owned by BJP MP Ajay Sancheti, was given the commercial mining rights for coal blocks in the Bhatgaon II Extension Block at a significantly lower rate, causing a massive loss to the… exchequer,” said mining law expert law Sudiep Shrivastava.

Mr. Shrivastava said he expected the reports to generate ‘more trouble’ to the government this year. “If all the facts come out properly, the government will be in more trouble as this is the election year.”

Top sources close to the BJP government, who are updated on the case, told The Hindu that nothing was “proved” in court. “The Bhatgaon II coal block was allocated by the Central government to the State. After the allegation [by the CAG], the Centre de-allocated the block. The Chhattisgarh Mineral Development Corporation (CMDC) challenged the decision [to de-allocate the block] in the Chhattisgarh High Court. The court issued an interim stay… Hence, it has not been proved that anyone received any undue benefit,” said a source close to the BJP Central leadership.

Mr. Shrivastava said the block was de-allocated for “non-development” in a time-bound manner rather than for “mis-allocation.”

The third report, submitted on March 8, is called ‘Public Sector Undertakings.’ It looks at the health of PSUs in the State, and the final report deals with the revenue sector, analysing the tax structure and collection.

The reports are expected to be tabled in the Assembly by the end of the budget session, on March 22.

The Hindu, 12 March, 2013, http://www.thehindu.com/todays-paper/tp-national/cag-report-on-mining-submitted-to-chhattisgarh-government/article4499010.ece


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