The Jharkhand coal scam had hit the headlines in after an audit report by Comptroller and Auditor General of India (CAG) revealed that. The coal allocation scam, popularly known as ‘Coalgate’ in media. At the initial report of CAG only said that the blocks of coal could have been allocated with. The government’s thrust after the coal scam report by the Comptroller and Auditor General of India (CAG) is in the direction of cancelling allocations of coal.
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BJP 26 Aug If the most important charge made by the CAG was that of the Government’s legal authority to auction the coal blocks, the one cozl drew the most attention was certainly the size of the “windfall gain” accruing to the allocatees.
Surgical Strikes At LoC: Let me humbly submit that, even if we accept CAG’s contention that benefits accrued to private companies, their computations can be questioned on a number of technical points. The government has offered two key defences in the controversy over coal block allocations.
These FIRs accuse them of overstating their net worth, failing to disclose prior coal allocations, and hoarding rather than developing coal allocations. At the end of Junecoal ministry decided to form an Inter-Ministerial Group IMGto decide on either de-allocation or forfeiting the Bank Guarantees BG of the companies that did not develop allotted coal blocks. Archived from the original on 16 September Out of these, it has recommended de-allocation of 13 coal blocks and encashment of bank guarantees of 14 allottees.
DMK minister comes under fire”. Any losses as a result of coal allocations, then, between and are seen by the CAG as being the responsibility of the Government.
Coal Scam | Full Coverage – Livemint
Subsequently, Supreme Court decided to set up a special CBI court where all coal block allocation cases will be tried. Now share the story Too bad. Reacting to this, Jagathrakshakan admitted to getting a coal block, and said that, “It is true that we got a coal allocation but it was a sub-contract with Puducherry government and then we gave it away to KSK company.
Click here to read full coverage. He also accused the Coal Ministry of violating its own conditions clause 17 of General Condition of Allocationscabdal that the caluse “clearly stipulates that any delay in transferring the land by a government company to the coal block allocatee can be claimed as grace period.
Large companies under review by an inter-ministerial group IMG looking into coalfield allocations have had mixed results.
The agency has filed 14 FIRs and two preliminary enquiries so far in scabdal connection. Advocate M L Sharma filed a Public Interest Litigation PIL in the Supreme Court seeking to cancel the allotment of coal blocks on grounds of arbitrariness, illegality, unconstitutionality and public interest.
As per the IMG’s recommendations steel maker SAIL is among the five companies to lose bank guarantees for delay in developing allotted blocks. It also appointed Rajinder Singh Cheema Ex. Advocate General, Punjab as the special public prosecutor and Justice Bharat Parashar as the judge of the special court that will hear the case on a day-to-day basis.
It had stated that licenses had been issued to ineligible applicants who had deliberately suppressed facts, disclosed incomplete information, submitted fictitious documents and used fraudulent means for getting licenses and thereby access to spectrum. In fact, there was no legal impediment to introduction of transparent and objective process of competitive bidding for allocation of coal blocks for captive mining as per the legal opinion of July of the Ministry of Law and Justices and this could have been done through an Administrative decision.
Several companies allotted captive coal blocks for their power projects claimed to have placed orders for power generation equipment with Chinese manufacturers to strengthen their candidature—only, these were not really orders. He requested court to appoint a retired judge and police officer of impeccable integrity to overlook the investigation.
Home What Is What is coal scam? Standing Committee on Coal and Steel tabled in Parliament on 23 April stated in its latest report that all coal blocks distributed between and were done in an unauthorized manner and allotment of all mines where production is yet to start should be cancelled.
The decisions have been taken after careful consideration, a top coal ministry official told The Indian Express. The CAG report, leaked to the press in March as a draft and tabled in Parliament in August, is a performance audit focusing on the allocation of coal blocks and the performance of Coal India in the —09 period. The Times of India. This article may be in need of reorganization to comply with Wikipedia’s layout guidelines. How marketplaces are to be affected 10 key moments that changed the course of India Inc in New e-commerce rules: Monnet, which is also a partner in the block, also echoed the same.
In this way, the rights for the use of the coal block ultimately passed on to KSK. Therefore, aggregating the purported financial gains to private parties merely on the basis of the average production costs and sale price of CIL could be highly misleading. In response to the Times of India story there was an uproar in Parliament, with the BJP charging the government with corruption and demanding a court-monitored probe into coal allocations:.
In its reply, the Coal Ministry said in June that there was a substantial difference between the price of coal supplied by Coal India Ltd CIL and the cost of coal produced through coal blocks allocated for captive mining and as such there was windfall gains to the allocattees, part of which the government wanted to tap through competitive bidding.
Until the other day—that is before the Supreme Court delivered its advisory opinion—the dominant view was that all scarce natural resources should be auctioned, otherwise the allocation would be tantamount to causing loss to the exchequer.
The neutrality of this article is disputed. SC 25 Aug Ltd, which received coal blocks illegally by means of inflating their financial statements and overriding the legal tender process.
Retrieved 6 March Defending the coalfield allocation process, over which the government has been accused of wrongdoing, the Congress again rejected the demand for the cancellation of mine allotments and said that no one benefited from coal allocation as it cannot be sold.
Explained: What is the coal scam all about in which former Jharkhand CM Madhu Koda was held guilty
However, JR Power had no expertise in thermal power, iron and steel, or cement, the key sectors for consumption of coal. It estimated loss to the exchequer to the tune of Rs Report on coal block loss “exceedingly misleading”: Ltd and Hindalco Industries Ltd, which had been allotted the Tubed coal block in Jharkhand in Augusttwo officials who attended the meeting said on Monday. A report of the parliamentary standing committee said that the allocation of blocks between and had been unauthorised.
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