The Central Bureau of Investigation (CBI) probe into the allocation of coal blocks is expected to reach closure soon.
Close on the heels of the Comptroller and Auditor General (CAG) estimating a Rs 1.86-lakh-crore loss to the exchequer on account of irregularities in award of coal blocks to companies, CBI, according to its spokesperson, is readying to submit its report to the Central Vigilance Commission (CVC) by the end of this month. The report would be based on a preliminary enquiry, which was initiated in June.
CBI’s report will have findings related to irregularities in coal block allocation to private companies between 2006 and 2009. A team of CBI officials had recently visited 65 coal blocks across Jharkhand and Chhattisgarh, among other states, to gather data and evidence related to mining activity undertaken there.
A senior CBI official said the investigative body was likely to initiate action against private companies found to have misused the coal blocks allocated to them. It would not look into the policy matters, as that is not part of its mandate. The probe so far has not touched the public sector companies. Even the CAG report on coal block allocations and augmentation of coal capacity has focused only on the private sector companies, on grounds that any profit made by a public undertaking comes back to the government as dividend. Also, CAG found that several public sector units were loss-making entities.
On the basis of a complaint received from the Bharatiya Janata Party, CVC, the government’s anti-corruption watchdog, had earlier referred the coal allocation issue to CBI. Now, the investigative agency may also refer to the final CAG report, tabled in Parliament yesterday, to support its case.
Based on the CVC reference, CBI is looking at three areas — why allocations were continued during the said period, even as the legislative change to bring about auctioning was pending; whether these blocks were allocated in a fair and transparent way; and if there had been misuse of the coal blocks allotted to companies.
A senior CBI official had earlier pointed out: “Our focus is more on the last two allegations, as the first one is regarding a policy matter that is not CBI’s mandate.” The CBI official, however, added that a formal case would be registered in the matter if definite evidence of any violation of law was found in the preliminary enquiry in the other two allegations.
CAG, in its report yesterday, said private companies were likely to make a profit totalling Rs 1.8 lakh crore because the blocks were not allotted through competitive bidding.