The CAG report, leaked to the press in March as a draft and tabled in Parliament in August, is a. Government auditor CAG on Friday said private firms are likely to gain Rs lakh crore from coal blocks that were allocated to them on. Overview. Coal is the most important indigenous source of energy for Indian economy with a geological reserve of 2,85, million tonne and.
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The report detailed the further probe into the disclosures made by an accused-turned-approver. It recommended that all “personnel” who have been involved “directly or indirectly” in the allocation process “should be investigated for their role”. The CAG devotes ten pages of its report to reviewing the legal basis for an auction, and comes to the following conclusion:.
However, the Ministry of Coal went ahead for allocation of coal blocks through Screening Committee and advertised in September for allocation of 38 coal blocks and continued with this process until The reserves it controls are more than the combined reserves held by much larger companies — Gujarat Ambuja and Lafarge.
The reason why the CVC can interfere is because of this administrative control. Activist lawyer Prashant Bhushan, sought creation of a special investigation team to probe the case as it involved “very powerful personalities in the present government who were either in charge of the allocation process or who influenced the process to get allocation to their favoured entities”. On 13 March Supreme Court bench responded to rare display of divergence between center and premier investigation agency CBI by asking its director not to share details of coal block scam investigations with political executives and report only to the court.
Any losses as a result of coal allocations, then, between and are seen by the CAG as being the responsibility of the Government.
Supreme Court of India. Retrieved 6 March Out of these, eeport has recommended de-allocation sczm 13 coal blocks and encashment of bank guarantees of 14 allottees. Now share the story Too bad. Other parts of the report, however, suggest that while an administrative decision might be sufficient legal basis for instituting competitive bidding, the ca footing” of competitive bidding would be improved if the statute were amended to specifically provide for it. However, considering inflation rate equalling discount rate, the gain calculated reflects the nearly accurate value.
Another coal-to-liquid block — North of Akrapal allocated to the Strategic Energy tech System Limited, which is a joint venture between the Tata group and South African firm Sasol has also been de-allocated.
He added that many complaints and FIRs have been filed on these issues and state and central governments have been informed about coxl. Home What Is What is coal scam?
The Urtan North block is also critical to JSPL’s plans as it was supposed to meet per cent of the coking coal needs of its already operational Raigarh steel plant in Chhattisgarh. The two companies, whose 4 blocks figure in the list of 11 to be de-allocated, said that they are being punished for no fault of theirs. Coak suspects 1st e-auction of coal blocks was rigged. Naveen Jindal, however, denied any wrongdoing.
Court then issued summons to the six accused. Retrieved 1 June If provision is made for competitive bidding in the Act itself or by virtue of rules framed under the Act the bidding process would definitely placed on a higher level of legal footing.
What is coal scam?
They were, however, granted bail on the same day and could now challenge the sentence in High Court. Countdown To Elections Results.
The Opposition alleged that the Government violated all norms to give him coal fields. Coalgate may further delay mining approvals: However, JR Power had no expertise in thermal power, iron and steel, or cement, the key sectors for consumption of coal. The ministry has been facing intense flak over alleged irregularities in allocation of coal blocks since and the Central Bureau of Investigation CBI is cah investigating the abnormalities and criminal conspiracy in their allotment.
CAG readying another report on coal block irregularities. Special public prosecutor, judge appointed”. However Mr Gupta maintains he had no involvement in IST Steel and denies influencing the coal-block allocation process. This premise of the CAG is flawed. The auditing body said it is “of strong opinion that there is a need for strict regulatory and monitoring mechanism to ensure that benefit of cheaper coal is passed on consumers”.
It said that the government gave the company permission to use excess coal from three blocks allocated that had been allocated for the power vag and that this was not only a violation of the oj process but also benefited Reliance Power. Accusing cav UPA government of being “arrogant and despotic”, BJP leader Arun Jaitley said the onus is on Prime Minister Minister Manmohan Singh to accept the responsibility for the “arbitrary and discretionary” allocation of coal blocks.
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CAG report on coal scam: Latest News, Videos and Photos of CAG report on coal scam | Times of India
The block was allocated on 17 June How long can PM hold on to Ashwani Kumar? Parliament’s Public Accounts Committee on Thursday decided to examine the four latest reports of the CAGincluding the one on coal block allocation, which are critical of the government. Interestingly, the Coal Ministry said in June that there was a substantial difference between cay price of coal supplied by Coal India Ltd CIL and the cost of coal produced through coal blocks allocated for geport mining.
Over the course ofhowever, the question of corruption has come to dominate the discussion. But, now the coao coal scam is Rs Get real-time alerts and all the news on your phone with the all-new India Today app.
A large of allottees of these blocks were issued coa, cause notices by the IMG to show why they had failed to take the required action to develop these blocks and why action should not be taken against them. The resulting list, a veritable Who’s Who of Indian commerce, ensured that the topic of coal allocations would be one of the most written about stories of coxl Archived from the original on 14 September However, the CAG’s observation is based on a selective reading of the opinions given by the Department of Legal Affairs.
The Income Tax Department was also roped in to look into the financial frauds and follow the money trail.