The coal scam found its way into the headlines in March 2012 when a draft report of the Comptroller and Auditor General (CAG) estimating a windfall gain of Rs 10.7 lakh crore got leaked.
The CAG brought down the loss to exchequer to Rs 1.86 lakh crore in its final report in August 2012 but by then the damaged had been done for the UPA government. By then a CBI probe was ordered and the case’s tumultuous journey started.
Through twists and unexpected turns, the scam revisited in regular intervals in the past 29 months — from “missing files” to resignation of then Law Minister Ashwani Kumar for “correcting” CBI affidavit to Supreme Court calling the investigating agency a “cage parrot”.
In between, the government also sought to puncture CAG’s presumptive loss theory, saying it was flawed and there was no loss, as mining has not been done.
It all started with the CAG questioning the government allocating coal blocks without an auction and causing a windfall gain to companies. The CAG felt that the government could auction the coal blocks at least since 2006 after the government got a legal opinion but chose not to do so.
With the scam to light, Public Interest Litigations (PILs) were filed in Supreme Court alleging that proper guidelines were not followed during the UPA regime. Later, the court included the allocations since July 14, 1993 and in effect bringing the allocations during NDA rule also under the scanner.
While total of 70 coalmines or blocks were allocated between 1993 and 2005, 53 were allocated in 2006, 52 in 2007, 24 in 2008, 16 in 2009 and 1 in 2010. Out of this, 24 were taken away at different points in time, effectively leaving the total number of allocated blocks at 194.
Even before the final CAG report came, the CVC ordered a CBI inquiry into the scam in May 2012. The agency has so far named several companies and politicians like Naveen Jindal and Vijay Darda in 28 cases it registered.
In one of the cases, it also named business tycoon Kumaramangalam Birla and P C Parakh in an FIR for alleged irregularities in the allocation of coal blocks to Hindalco. Parakh questioned the move asking CBI how they could not name then Prime Minister Singh as he was handling the Coal Ministry when the allocation happened. This case is now headed for closure, as CBI could not gather any evidence of wrongdoing.
The case also witnessed a twist August last year when then Coal Minister Sriprakash Jaiswal claimed that some crucial files went missing.
Last year, CBI Director Ranjit Sinha also admitted to the SC that its initial report on the scam had been shared with the then Law Minister Kumar as well as bureaucrats from the Coal Ministry and the Prime Minister’s Office. He also said certain changes had been made to the report. A furore followed and Kumar had to resign.
THE HIGHWAY TO COAL SCAM
** July 1992 — Coal Ministry orders setting up of a screening committee
** July 1992 — List of 143 coal blocks identified for allocation
** March 2012 — CAG’s draft report estimates windfall gains at Rs 10.7 lakh crore.
** May 2012 — CVC orders CBI enquiry.
** June 2012 — Coal Ministry forms an inter-ministerial panel to review the process of allocation.
** August 2012 — CAG report tabled in Parliament. Loss estimated at Rs 1.86 lakh crore.
** August 2012 — Govt claims CAG’s presumptive loss theory flawed.
** August 2012 — Observations of CAG clearly disputable: PM
** September 2012: PIL in SC seeks cancellation of 194 coal block allotments. SC begins monitoring CBI probe
** March 2013 — Supreme Court asks CBI not to share probe details with govt
** April 2013 — Parl Standing Committee report says coal blocks distributed between 1993-2008 done in unauthorized manner.
** April 2013 — CBI submits affidavit saying investigation report shared with law minister Ashwani Kumar.
** May 2013: Ashwani Kumar resigns.
**June 2013: CBI registers FIR against Naveen Jindal and Dasari Narayana Rao.
** October 2013: CBI files FIR against Kumarmangalam Birla and PC Parakh.
** July 2014: Supreme Court sets up a special CBI court to try all coal field allocation cases.
** August 2014: The CBI decides to close its case against Birla and Parakh.
COAL BLOCK ALLOCATIONS
1993-2005 — 70
2006 — 53
2007 — 52
2008 — 24
2009 — 16
2010 – 01
(An edited version appeared in Deccan Herald on August 26, 2014)