Coal scam: CBI to drop case against Kumar Mangalam Birla

Aug 25 2014, 15:45 IST
Comments 0
Coal scam case against Kumar Mangalam Birla had sparked widespread condemnation from industry leaders and politicians alike. Coal scam case against Kumar Mangalam Birla had sparked widespread condemnation from industry leaders and politicians alike.
SummaryCBI filed the case against Birla late last year in relation to a block allocated in 2005 to Hindalco Industries

The CBI today said it will close this week the case against industrialist Kumar Mangalam Birla and former Coal Secretary P C Parakh in connection with alleged irregularities in the allocation of Talabira-II coal block.

CBI spokesperson Kanchan Prasad said the closure report is likely to filed in the case this week.

The agency had reached conclusion to include names of Birla and Parakh in the FIR in connection with allocation of Talabira-II coal block after scrutinising related files during its nearly 16 month-long preliminary enquiry.

CBI sources said that allegations levelled by it in the FIR could not be substantiated by it.

Immediately after the case was registered by the agency on October 15, 2013, Prime Minister's office had given a detailed clarification saying, "the Prime Minister is satisfied that the final decision taken in this regard was entirely appropriate and is based on the merits of the case placed before him."

The agency's decision to file the FIR in which it accused Birla and Parakh of criminal conspiracy and criminal misconduct on the part of government officials had come under criticism from the former Coal secretary who said in his book that "CBI is either outright incompetent or is playing a deeper game."

He blamed CBI Director Ranjit Sinha of abusing his office by accusing him and Birla of conspiracy and corruption.

The FIR related to allocation of Talabira II and III coal blocks in 2005 and CBI had charged Birla, Parakh and other officials of Hindalco under various IPC sections including criminal conspiracy and criminal misconduct on the part of government officials.

In its FIR, the agency had alleged that during the 25th Screening Committee meeting, chaired by Parakh, applications of Hindalco and Indal Industries were rejected for mining in Talabira II and III "citing valid reasons".

The agency had alleged in its FIR that on the recommendations of the Screening Committee, the coal blocks were allocated to Mahanadi Coalfields and Neyveli Lignite Corporation, both public sector undertakings.

These recommendations were placed before the "Competent Authority" which agreed with Parakh, who later issued letter of allocation to the PSUs on June 16 and July 15 of 2005.

Within days, a "personal meeting" took place between Parakh and Birla in which the industrialist requested for the allocation of Talabira II coal block, CBI had said.

"Pursuant to these letters and personal meeting between Parakh and Birla, Parakh, by abusing

Single Page Format
Ads by Google

More from Companies

Reader´s Comments
| Post a Comment
Please Wait while comments are loading...