Former MP Vijay Darda, others convicted in coal bloc allocation case

Former Rajya Sabha MP Vijay Darda and former Coal Secretary HC Gupta, along with five other individuals, were convicted by a Delhi court on Thursday in connection with a CBI case concerning irregularities in the allocation of a coal bloc in Chhattisgarh.

The court found the accused guilty of criminal conspiracy (punishable under Section 120-B of IPC) and cheating (punishable under Section 420 of IPC), as well as various provisions of the Prevention of Corruption Act.

Arguments on the sentencing will be held on July 18.

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Despite the CBI filing a closure report in the case, the court had rejected it in 2014 and ordered a fresh investigation by the probe agency.

According to the court, Vijay Darda, who is also the chairperson of the Lokmat Group, had “misrepresented” facts in letters addressed to the then Prime Minister Manmohan Singh, who held the coal portfolio. The purpose of the misrepresentation was to secure the Fatehpur (East) coal block in Chhattisgarh for JLD Yavatmal Energy Pvt Ltd.

The 35th Screening Committee had allocated the coal block to JLD Yavatmal Energy.

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Special Judge Sanjay Bansal also convicted Vijay Darda’s son, Devender Darda, as well as senior public servants KS Kropha and KC Samria, JLD Yavatmal Energy Pvt Ltd, and its Director Manoj Kumar Jayaswal.

The CBI’s FIR alleged that JLD Yavatmal Energy had wrongfully concealed the previous allocation of four coal blocks to its group companies between 1999 and 2005. However, the probe agency later filed a closure report, stating that no undue benefit was granted to JLD Yavatmal Energy by the Coal Ministry in the allocation of coal blocks.

The CBI concluded that there was insufficient evidence to establish cheating and criminal conspiracy involving officials of the Coal Ministry and directors of JLD Yavatmal Energy.

These convictions on Thursday mark the 13th in the coal scam, which had a significant impact on the UPA-II government led by Manmohan Singh. In 2012, the Comptroller and Auditor General had criticized the government for the allegedly inefficient allocation of 194 coal blocks to public sector enterprises and private companies between 2004 and 2009 in a non-transparent manner.

Initially, the CAG estimated a loss of Rs 10.6 lakh crore to the exchequer, but the final report presented in Parliament revised the figure to Rs 1.86 lakh crore.