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Indian coal mining scam - 10 firms in CBI noose for forgery
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Monday, 27 Aug 2012
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The CBI has unearthed about 10 cases, wherein companies fudged facts to qualify for getting coal blocks through the allocation route, and formal complaints in this regard are expected to be filed shortly.

A source privy to the investigations said "The agency has examined allocation of 64 coal blocks for which 1,422 applications were received by the coal ministry between 2006 and 2009. Most of the anomalies have been found in allocations of blocks in Jharkhand, Chhattisgarh and Karnataka. The FIRs would be primarily registered for criminal conspiracy and forgery."

The development comes a day after coal minister Mr Sriprakash Jaiswal statement that there was a possibility that some companies might have applied for blocks on the basis of wrong information or enough due diligence was note conducted to prevent such companies from getting the mines. The coal minister was replying to a question whether the controversial allocations would be reviewed.

Mr Jaiswal had said at a press conference he addressed on Friday along with finance minister Mr P Chidambaram and law minister Mr Salman Khurshid to denounce the government auditor's report on allocation of coal blocks that "There may be some cases where companies may have provided wrong information. It is also possible that there was shortcoming on part of officials in scrutiny unwittingly or willingly is a matter for investigation by the CBI. The agency is investigating and facts will soon come out."

While examining the financial implication of the allocation of 57 coal blocks first reported by TOI on May 22, the comptroller and auditor general has said the government extended an estimated windfall gain of INR 1.86 lakh crore to private companies by giving them the blocks without bidding.

The report has sparked off a political standoff and stalled Parliament for all of last week over the opposition demand for PM Manmohan Singh's resignation as he held the coal ministry for a better part of the time when these blocks were allocated.

Source - The Times of India

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