Delhi court asks CBI for clarification on Talabira-II allocation

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New Delhi: Hearing closure report of CBI, a special court here today asked the agency to clarify whether Talabira-II coal block in Odisha was allocated to Hindalco as per constitutional guidelines.

The CBI on August 29 filed its closure report in the court over the coal block allocation case in which industrialist Kumar Mangalam Birla and others were named.

The central agency stated the about turn taken by Coal Ministry to first reject and then allocate Talabira-II and III coal block to Kumar Mangalam Birla-owned Hindalco was taken in “larger interest of the country” and in view of the “federal regal frame work”.

Justifying its closure report in the case of alleged irregularities in allocation of Talabira-II and III coal blocks in Odisha to Hindalco, the agency said the evidence collected during investigation did not substantiate the allegations levelled against the persons named in the FIR which included Birla and former Coal Secretary P C Parakh.

“The decision to accommodate the said firm of Mumbai in Talabira-II coal block in partial modification of the recommendation of the 25th meeting of the Screening Committee was found to be a case of incorporating both the views of the Screening Committee and the Government of Odisha.

“It was taken in larger interest of the country and in view of the federal regal frame work wherein most of the statutory clearances are accorded by the concerned State Government,” CBI spokesperson Kanchan Prasad said while trying to justify agency’s closure report. .

CBI in its FIR had named former Coal Secretary P C Parakh and KM Birla in connection with alleged irregularities in the allocation of Talabira-II coal block.

The FIR against Birla and former Coal secretary P C Parakh was registered in October last year by CBI which had alleged that Parakh had reversed his decision to reject coal block allocation to Hindalco within months "without any valid basis or change in circumstances" and shown "undue favours".

The FIR related to allocation of Talabira II and III coal blocks in 2005 and CBI had booked Birla, Parakh and other officials of Hindalco under various IPC sections, including criminal conspiracy and criminal misconduct on the part of government officials.

During the investigation, CBI, however, had found that there was no "quid pro quo" on the part of Parakh and there was no wrongdoing in allocation of coal blocks to Hindalco.

In its FIR, the agency had alleged that during the 25th screening committee meeting, chaired by Parakh, applications of Hindalco and Indal Industries were rejected for mining in Talabira II and III "citing valid reasons".

On the recommendations of the screening committee, the coal blocks were allocated to Mahanadi Coalfields and Neyveli Lignite Corporation, both public sector undertakings.

These recommendations were placed before the "competent authority" which agreed with Parakh, who later issued letters of allocation to the PSUs on June 16 and July 15 of 2005.

Within days, a "personal meeting" took place between Parakh and Birla in which the industrialist requested for the allocation of Talabira II coal block, CBI had said.

"Pursuant to these letters and personal meeting between Parakh and Birla, Parakh, by abusing his official position as a public servant recommended the allocation of Talabira II along with Talabira III coal block to Hindalco Industries Ltd, along with other two companies without any valid basis or change in circumstances and with the sole intention to show undue favours to Hindalco Industries Limited," the agency had alleged in its FIR.

CBI had alleged that Parakh recommended formation of a joint venture between Mahanadi Coalfields, Neyveli Lignite and Hindalco with equity share holding of 70 per cent, 15 per cent and 15 per cent respectively.

(With PTI inputs)