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CVC's reference to CBI puts PMO under cloud-Rakesh K Singh
-The Pioneer

In what could puncture the Government’s defence that there were no irregularities in the allocation of coal blocks when the Coal Ministry was under the charge of Prime Minister Manmohan Singh, the Central Vigilance Commission (CVC) has specifically asked the CBI to look into the role of Prime Minister’s Office (PMO) and the Screening Committee of the Coal Ministry.

The CVC has also asked the agency to probe why auction route was not adopted and why such a large number of coal blocks (155 coal blocks to 100 companies) were allocated during 2006-09. The Coal Ministry was under the charge of Prime Minister Manmohan Singh during that period.

The vigilance panel has asked the agency to ascertain the loss incurred, if any, due to the allocation of coal blocks during the period through first-come-first-served basis. The CBI has also been asked to probe if there was any pressure on the Screening Committee of the Coal Ministry to allocate such a large number of coal blocks during the period.

Pertinently, only eight coal blocks had been allocated during the regimes of PV Narasimha Rao, HD Deve Gowda and IK Gujral, 32 blocks during the NDA regime. But 155 coal blocks were allotted during just three years of UPA Government.

The terms of reference of the panel clearly debunks the Government claim that there was no irregularity as the anti-corruption watchdog refers cases to the CBI only after finding prima facie material to conduct a probe into any complaint forwarded by it.

Before sending the complaint to the CBI for a probe into the alleged irregularities in allocation of the coal blocks, the CVC had held a through examination of the plaint made by BJP leaders seeking investigation into the issue.

The CBI has also registered a Preliminary Enquiry (PE) after verification of the CVC-referred complaint for two days. But senior CBI officials at the outset of the enquiry had said on Friday that the agency would only probe if there were any irregularities in the utilisation of the allocated coal blocks by the companies and would not investigate the policy matters related to the allocation of the natural resource on controversial method of first-come-first-served basis.

The agency, according to senior officials, has limited its  enquiry to find out if the extraction of coal was over and above the allocated entitlements of the private companies and if the “black diamond “was used strictly for the purpose for which it was allocated.

When asked if the CBI will examine the PMO officials in the light of the specific reference from the CVC through its covering letter along with BJP leaders’ complaint, top CBI officials said, “CVC has only forwarded a complaint on which we have registered a PE and enquiries are on.”

The Department of Personnel and Training (DoPT), incidentally, is the administrative ministry of the CBI. This could be a reason why the CBI is unwilling to probe the entire allocation process during the period and it remains to be seen how fast the agency converts the PE into a regular case.

Former Telecom Minister A Raja and a host of other telecom officials besides corporate honchos were booked by the CBI on similar allocation of scarce spectrum to telecom operators and are presently facing trial in the 2G spectrum allocation case by a designated court.

Sources said, CBI will keep in touch with the CVC during the pendency of the preliminary probe considering the general nature of the complaint. CBI will also keep the panel apprised of the developments related to the probe and is likely to submit a report on the PE by August 22.

The CVC had forwarded the complaint of BJP leaders Prakash Javadekar and Hansraj Ahir, who had alleged that first-come-first-served basis was adopted by the Government to benefit some private companies. The complaint by the BJP leaders also alleges that there was a deliberate delay of nearly two years in initiating the process of auction for coal blocks.

In his complaint, Ahir had alleged that the price of 1,700 crore metric tonne of coal worth Rs 51 lakh crore was given almost free to private companies.

According to the leaked draft report of the Comptroller and Auditor General (CAG), PSUs like NTPC and private sector companies including the Tata Group are alleged to be beneficiaries of windfall gains from opaque system of allocation of natural resources.

The magnitude of the windfall from allocation of 155 coal blocks with reserves of 33 billion tonnes is estimated reportedly by the CAG at a whopping Rs 10.67 lakh crore.

The Centre, on its part, has denied the figures quoted in the leaked report and said there was no final report from the Government auditor. The CBI, meanwhile, is likely to visit the offices of coal ministry on Monday and might collect some documents related to allocation and reports of utilisation of the coal blocks by private companies, CBI sources said.