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Business News/ Politics / Policy/  Coal scam: Koda says Manmohan sidestepped govt panel recommendations
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Coal scam: Koda says Manmohan sidestepped govt panel recommendations

Koda alleges that Singh sidestepped the recommendations of a govt panel in allocating a coal block in 2007 to two firms from the Naveen Jindal group

A file photo of former Jharkhand chief minister Madhu Koda. Photo: HTPremium
A file photo of former Jharkhand chief minister Madhu Koda. Photo: HT

New Delhi: Former Jharkhand chief minister Madhu Koda on Wednesday alleged that then Prime Minister Manmohan Singh sidestepped the recommendations of a government committee in allocating a coal block in 2007 to two companies from the Naveen Jindal group.

The allegation came during a hearing before special Central Bureau of Investigation (CBI) judge Bharat Parashar on a case related to alleged irregularities in the allocation of coal blocks.

Koda has asked the court to summon Singh as an accused in the case, along with Anand Swaroop, then secretary (energy), and Jai Shankar Tiwari, then secretary (mines and geology).

The case pertains to alleged irregularities in the allocation of the Amarkonda Murgadangal coal block to two Jindal group companies, Jindal Steel and Power Ltd (JSPL) and Gagan Sponge Iron Pvt. Ltd (GSIPL).

“Former prime minister Manmohan Singh consciously ignored the recommendations of screening committee in allotting coal block to Jindal Steel and Power Ltd," Koda told the CBI special court.

Singh was also coal minister at the time, but his name didn’t figure in the CBI chargesheet, which mentions Koda, former coal secretary H.C Gupta, 10 others and five firms. They are charged with criminal conspiracy, criminal breach of trust, cheating and certain provisions of the Prevention of Corruption Act.

To allocate coal blocks to the power sector, a screening committee was formed with representatives from the ministry of power and ministry of steel and headed by former coal secretary Gupta.

The screening committee recommended awarding 50% of the Amarkonda Murgadangal coal block to Bhushan Energy Ltd in 2007.

Koda’s lawyers alleged that the former Prime Minister’s office instead routed the file through then minister of state for power Dasari Narayana Rao’s office and allotted the coal block to JSPL instead.

“If there is a conspiracy in allocation, there is no way that the former PM was not aware of it. At this stage, he cannot get the benefit of doubt," the court was told.

Judge Parashar asked CBI to respond to the arguments on Thursday. The CBI is likely to oppose summoning Singh to court as his name does not figure in the chargesheet.

“The wrongdoing lies with JSPL and the coal ministry," the CBI argued in an earlier hearing.

The trial in this case is scheduled to commence on 18 September, before which arguments on framing of charges are taking place.

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Published: 03 Sep 2015, 12:39 AM IST
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