Coalgate: CBI files closure report in case against KM Birla

Aug 30 2014, 02:47 IST
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SummaryIn a reprieve for leading industrialist Kumar Mangalam Birla and others, who were named as accused in FIR in one of the coal block allocation cases

In a reprieve for leading industrialist Kumar Mangalam Birla and others, who were named as accused in FIR in one of the coal block allocation cases, CBI has filed a closure report in a special court.

CBI has told the court it will file some documents related to the case before it after which Special CBI Judge Bharat Parashar fixed the closure report for consideration on September 1. The closure report was filed in the court on Thursday.

The FIR against Birla and former coal secretary PC Parakh was registered in October last year in which CBI had alleged that Parakh had reversed his decision to reject coal block allocation to Hindalco within months “without any valid basis or change in circumstances” and shown “undue favour”.

The FIR related to allocation of Talabira II and III coal blocks in 2005. CBI had booked Birla, Parakh and other Hindalco officials under various sections, including criminal conspiracy and criminal misconduct by the government officials. During the probe, CBI, however, found there was no “quid pro quo” on the part of Parakh and there were no wrongdoings in the allocation of coal blocks to Hindalco.

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".

On the recommendations of the committee, the coal blocks were allocated to Mahanadi Coalfields and Neyveli Lignite Corporation, both PSUs.

These recommendations were placed before the "competent authority", which agreed with Parakh, who later issued letters of allocation to the PSUs on June 16 and July 15, 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.

CBI had alleged Parakh recommended formation of a JV between Mahanadi Coalfields, Neyveli Lignite and Hindalco with equity share holding of 70%, 15% and 15%, respectively.

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