New Delhi: The Coalgate Scandal, also known as the Coal Mining Scandal, was one in which the Government of India allegedly allocated 142 national coal blocks arbitrarily to state-run and private companies from the period 2004-09, as stated by the Comptroller and Auditor General's report on an audit.
According to the CAG's report submitted on the floor of the house on 17th Aug 2012, the Government deviated from the standard protocol of competitive bidding, resulting in an estimated loss of Rs.1, 86,000 crore.
The essence of the CAG's argument is that the Government had the authority to allocate coal blocks by a process of competitive bidding, but chose not to.
On 27 August 2012 Manmohan Singh read a statement in Parliament rebutting the CAG's report both in its reading of the law and the alleged cost of the government's policies.
