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LATEST NEWS UPDATES | Coalgate probe stalls as CBI awaits files from ministry -Rajeev Deshpande & Neeraj Chauhan

Coalgate probe stalls as CBI awaits files from ministry -Rajeev Deshpande & Neeraj Chauhan

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published Published on Feb 14, 2013   modified Modified on Feb 14, 2013
-The Times of India

More than five months after the CBI began investigating Coalgate, the agency is yet to receive hundreds of files from the coal ministry as it probes charges of criminality in allocation of coal blocks to private players.

Although CBI has been sifting through an enormous mass of information regarding coal block allocations that the CAG has said caused a loss of Rs 1.86 lakh crore to the government, the investigative agency is being impaired by lack of access to relevant files.

Closely questioned by Parliament's Public Accounts Committee (PAC) on Wednesday, CBI director Ranjit Sinha told the panel that information sought by the agency has not been made available. Although he did not suggest the ministry was stonewalling investigations, he implied that the probe was being hampered. Files with regard to some 40 coal blocks are awaited.

Sinha faced a volley of questions from Congress MPs Saifuddin Soz and Sanjay Nirupam, Janata Dal (United)'s N K Singh and BJP's Prakash Javadekar about the slow progress of investigations. In response, Sinha said non-availability of official records and short staffing were important reasons for the delay.

The official record is required to probe key aspects of coal block allocations like a comparative analysis of applicants that led a screening committee set up under the supervision of the Prime Minister's Office (PMO) to select a particular firm ahead of others.

Coalgate revelations stung the Manmohan Singh government with the Comptroller and Auditor General (CAG) noting that PMO had approved the steering committee route for coal block allegations and investigations revealing that crucial minutes of the panel's meetings failed to disclose the rationale for the allocations.

CBI sources said Coalgate investigations seemed to have hit a roadblock with the agency awaiting files. Many of the files received relate to allocations in the 1990s and are old and poorly maintained. "Some of the files are about allocations made between 1993 and 2004 and are in a bad condition. We have sent reminders to the ministry about other files," said an official.

The agency is investigating some 194 allocations since 1993, and is finding the going tough. "We are yet to receive files related to allocations made in states like Jharkhand, Chhattisgarh, Madhya Pradesh, Maharashtra, Odisha, West Bengal and all PSUs like Coal India, Nalco, Steel Authority of India and electricity boards apart from ultra mega power projects," said the source.

Some of the reasons advanced by the coal ministry are that officials responsible for certain decisions have been transferred or have retired. Companies booked by CBI so far include JAS Infrastructure Capital Pvt Ltd, AMR Iron and Steel Pvt Ltd, JLD Yavatmal Energy Ltd, Navbharat Power Ltd, Vini Iron and Steel Udyog Ltd, Grace Industries Ltd, Vikash Metal and Power Ltd, Green Infrastructure Ltd and Kamal Sponge Steel and Power Ltd.

Among the cases CBI is investigating relates to AMR Iron and Steel, a firm that has drawn comment about alleged links of its promoters with coal minister Sriprakash Jaiswal. AMR's Arvind Jayaswal has been questioned about his contacts with former minister of state for coal Santosh Bagrodia and the role of Congress Rajya Sabha MP Vijay Darda in the allocations.

Sriprakash Jaiswal has denied any business links with AMR. But his role as an arbitrator in a family dispute led the opposition to allege Jaiswal's links with the company. CBI is probing allegations of AMR incorrectly claiming to be a special purpose vehicle of Darda's Lokmat group and not revealing previous scrutiny - that would have weakened its claims to the Bander coal block.

In another case being probed by CBI, Yavatmal Energy, a Nagpur-based company, also claimed to be linked with the Lokmat group, an alleged deception without which the applicant would not have pre-qualified for a power ministry recommendation.

Committee sources said the delay could be explained in part due to the sheer volume of papers to be scrutinized but also said the agency's complaint ought to be taken seriously, particularly as some of the entities being investigated were politically connected.

The CBI team had come well prepared to brief the panel after having informed the Joint Parliamentary Committee on telecom on Tuesday about the taped recording of a senior prosecutor advising an accused about the agency's legal strategy.

The update provided by CBI detailed the investigations into alleged irregularities and corruption in awarding mines without competitive bidding to firms that were often not qualified or had submitted incorrect and forged information.

The Times of India, 14 February, 2013, http://timesofindia.indiatimes.com/india/Coalgate-probe-stalls-as-CBI-awaits-files-from-ministry/articleshow/18490640.cms


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