"The Prime Minister is in the dock for the policies and decisions which have led to high-level corruption in the coal block allocations," CPI(M) Polit Bureau said in a statement here today.
The party demanded a high-level enquiry "which should encompass the role of the Prime Minister's Office in the allocation of coal blocks.
"All those found responsible for wrong doing and causing loss to the exchequer should be proceeded against. In the meantime, the coal block allocations to private companies which have been done in an irregular fashion and those who have violated the terms and conditions should be cancelled forthwith," it said.
The party said the Coal Ministry was under the Prime Minister during most of the period which has been examined by the CAG.
"Under his watch, the Prime Minister's Office intervened to ensure coal blocks to certain private parties and provide undue benefits for those allocated coal blocks such as use of excess coal," it said.
Opposing the privatisation of the coal sector, the CPI(M) said allocation of coal for private sector power and steel plants should be done through the nodal agency, the Coal India Ltd and blocks allotted for such enterprises should be mined by the CIL and its subsidiaries.
"In the states, state-run mining corporations can be involved in the process. The rights of the coal-bearing states have to be safeguarded while the production of coal and its allocation for the entire country should be done in a planned manner," it said.
The Polit Bureau, which concluded its two-day meeting today, also demanded probe into the findings of the CAG on alleged post-bid concession given to a Reliance Power Company to use the excess coal produced from the coal block allocated to it.