The ministry has been facing intense flak over alleged irregularities in allocation of coal blocks since and the Central Bureau of Investigation CBI is currently investigating the abnormalities and criminal conspiracy in their allotment. The agency has filed 14 FIRs and two preliminary enquiries so far in this connection. In this backdrop, an inter-ministerial group IMG of the coal ministry met on 24 October to consider the fate of 30 coal blocks, including those being investigated by the CBI. All allottees had been issued show-cause notices and were asked to furnish their views to the IMG.
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What is coal scam? A report by the Comptroller and Auditor General of India showed inefficient and possibly illegal allocation of coal blocks between and Gupta, former joint secretary in Coal Ministry K. Kropha and former director of Coal Ministry K. Samaria two years in prison for their involvement in the Coal Scam. They were, however, granted bail on the same day and could now challenge the sentence in High Court.
Among the charges, one of the prime offences was abuse of public office, securing pecuniary advantage without public interest and criminal conspiracy. Coalgate, as it was popularly known snowballed into a huge political scandal which pulled top leaders and bureaucrats from the previous UPA regime into the probe. It estimated loss to the exchequer to the tune of Rs The central point of the CAG report that showed improper allocation was that the government had the authority to allocate the coal blocks.
However, this was to be done via competitive bidding. But the government chose to take another route and avoided competitive bidding, the CAG report said. CAG observed the revenue secured from the allottees for allocation was much less than what could have been if there was competitive bidding—hence presumptive loss to the exchequer.
The presumptive loss was factored in to estimate the windfall gains to allottees first at Rs He had also said that the observations of the CAG were disputed. At least a dozen companies were named in the FIR that resulted in a criminal investigation.
Accusations ranged from malicious means for securing allocation, overstating net worth, non-disclosure of prior allocation and hoarding rather than the development of allocated resources. A report of the parliamentary standing committee said that the allocation of blocks between and had been unauthorised.
It recommended deallocation of all blocks where construction had not started and forfeiture of bank guarantees in others. Over the course of the investigation, Supreme Court constituted a special court to try all cases related to the coal scam. Click here to join our channel indianexpress and stay updated with the latest headlines For all the latest What Is News , download Indian Express App.
What is coal scam?
The widening gap between the demand and domestic production of coal and consequent increase in coal imports to fill up the gap warranted a study to examine the adequacy and effectiveness of the action taken by Coal India Limited CIL and the Ministry of Coal MOC for augmentation of coal production. This assumes significance as there are instances where capacities in the power sector have been lying idle or facing difficulties in augmentation of capacity for want of coal. Further, though the Government of India GOI has notified certain sectors which may undertake captive mining of coal, the process of allocation of coal mines should be objective and transparent. For increasing the production of coal, the Expert Committee, chaired by Shri T. The rate of increase in production of coal by CIL during XI plan period remained far below the target envisaged by the Planning Commission.
CAG REPORT ON COAL SCAM PDF
Mikanos The letter was written on 5 February India portal Politics portal. Retrieved 1 June The company said has invested Rs. Retrieved 26 September If royalty and upfront payment are taken out from the revenue generated by auctioning coal blocks, the revenue flow stands at Rs 1. Whereas, the CAG report on power had accused the government of favouritism and benefitting companies like Tata and Reliance Power. Initially, the Government had initiated a proposal to introduce competitive bidding by formulating appropriate rules. Samaria two years in prison for their involvement in the Coal Scam. Later, in czg letter to Prime Minister Manmohan Singh, the CAG said the details brought out in the daily were observations which were under discussion at a very preliminary stage.