Gupta faced tough questions for allegedly overlooking the misrepresentation of facts by AMR Iron and Steel Private Limited which was allocated Bander Coal block in Maharashtra.
Gupta, who resigned as member of Competition Commission of India (CCI) after CBI summoned him as an accused in the case, was asked about a Screening Committee meeting chaired by him.
During this meeting, Gupta, a 1971 batch IAS officer of UP cadre, had cleared the coal block in favour of AMR group.
The CBI claimed that AMR had "fraudulently and wilfully" concealed the fact that its group of companies have already been allocated five coal blocks with an "object to avoid scrutiny on this count which would have weakened its claim", they said.
The allegation against the former Coal Secretary was that the committee did not follow the mandatory procedures and did not carry out proper background checks while allocating coal blocks to the companies.