The CBI has written to the Coal Ministry seeking clarifications over certain irregularities in formation of joint ventures (JVs) between private firms and public sector undertakings for seeking coal blocks.
The CBI has questioned the formations of joint ventures with majority stake being held by the private firms and the overall policy of formation of JVs. The CBI has termed the formation of JV between private parties and the PSUs as vague.
A number of such JVs are yet to take off but the private firms continue to hold a number of coal blocks.
The agency has already termed the policy of allocation of coal blocks to private firms as arbitrary. The probe so far into the coal block allocation scam has revealed that a large number of coal blocks were allocated to private firms without due verification and on bogus claims of the applicants.
The CBI suspects the coal blocks were allocated between 2006 and 2009 to firms that were not eligible and allocations were made by Screening Committee officials in criminal conspiracy with the private firms.
Following the CBI’s note, Coal Minister Sri Prakash Jaiswal has come under the scanner over policy followed while acting on applications for coal block allotments.
BJP has demanded the Coal Minister’s resignation over irregularities in coal block allocations and has sought an independent probe into the matter. left has lambasted the Government saying the Government is using public money for gains by private parties.
Congress has defended the Coal Minister, saying Coal Ministry would be responding to CBI questions. The agency had last month booked Congress MP Navin Jindal and former Minister of State for coal Dasari Narayan Rao and unknown officials of the Screening Committee for criminal conspiracy and cheating besides offences under the Prevention of Corruption Act for award of Amarkonta Murgadangal coal block in Jharkhand to Jindal Steel.