Coalgate: CBI to soon quiz Kumarmangalam Birla, Parakh

The questions included those on coal policy and allocation of coal blocks when the Prime Minister was in charge of the Coal ministry between 2006 and 2009.  

The replies of Nair were sought on delay in auctioning of coal blocks, missing coal files and events leading to the Talabira coal block being given to Hindalco in which Parakh and Birla, Chairman of Aditya Birla Group, have been named.  Nair, according to the sources, had responded on lines similar to the one made by Singh in Parliament in which he had defended the coal blocks allocation and rejected charges of wrong doing.

Hindalco had denied allegations of irregularities, claiming, “we wish to state unambiguously that we have followed every process required for allocation of coal completely, as stipulated by the Government policy.”

“This relates to media reports on an FIR naming Hindalco and our Chairman on coal issues.

Apparently, this seems to be part of a larger case entailing coal allocation to companies, and being one of the companies, we are being investigated also,” it had said.

The CBI alleged that during the year 2005, these persons entered into a criminal conspiracy and then public servant (Parakh) abused his position and showed undue favour to the Odisha-based industry in allocation of Talabira II and Talabira III coal blocks along with a Public Sector Undertaking of Tamil Nadu.

According to the FIR, Tamil Nadu government PSU Neyveli Lignite Limited was to be given Talabira II block but Parakh allegedly favoured Hindalco and allowed it to share the block with Neyveli leading to notional loss to the exchequer.

The agency could not reach exact quantum of loss as the coal block is still not operational.

The blocks were allocated for power production during a meeting of Screening Committee of the Coal Ministry; the sources said and claimed that the coal allocation was meant for PSUs only.

Parakh, who was Coal Secretary at the time of this allocation, faces charges of criminal misconduct under the Prevention of Corruption Act as also criminal conspiracy.  

The former coal secretary had also denied any wrong doing and had said “there is absolutely nothing wrong with the decision. It was a very fair and correct decision that we took. I don't know why CBI thought that there is a conspiracy.”