The CBI has named top industrialist Kumar Mangalam Birla, Chairman of the Aditya Birla Group, its group company Hindalco ltd, then Coal Secretary PC Parekh, and unknown officials for alleged criminal conspiracy and graft in connection with irregularities in allocation of coal blocks in 2005.
According to the FIR, Birla and Parekh allegedly hatched a conspiracy in the second half of 2005 after which Hindalco was allocated a portion of Talabira II coal block in Odisha. The block was reserved for PSUs and had already been allocated to Neyveli lignite Corporation before Hindalco was given a portion. CBI sources said that about 50 per cent of the Talabira II coal block was allocated to Hindalco on November 10, 2005.
The agency has booked Birla as a representative of Aditya Birla Group and his group company Hindalco. The CBI action reportedly resulted in an immediate fallout with Hindalco shares dropping on Tuesday morning by 1.27 per cent. Some of the other Birla companies were also reportedly affected.
Parekh allegedly allocated the block to Hindalco by overruling recommendations of the 25th Screening Committee that had earmarked Talabira II and Talabira III for PSUs.
The 14th FIR was registered on Monday and the agency conducted coordinated searches at six locations — the official premises of Hindalco in Delhi, Mumbai and Bhubandeshwar and the residential premises of Parekh at Secunderabad. Official premises of Chief of Sambalpur office of Hindalco office SK Tamotia too was searched. The agency claimed to have recovered incriminating documents following the searches and will summon Birla for questioning. Official sources said that Hindalco is under the scanner of the CBI for illegal allocation of Mahan coal block.
CBI spokesperson Kanchan Prasad said, “The CBI has registered a case against the then Coal Secretary, Representative of Mumbai-based Group of Companies, Odisha-based Industry and unknown persons/officials U/s 120-B IPC and 13(2) r/w 13(1)(d) of the Prevention of Corruption Act.”
During the last hearing in connection with the coal block allocation case, the Supreme Court had directed CBI to complete probe against all companies by the end of this year and file a status report by October 22.
Other private companies booked in coalgate case include Jindal Steel and Power, Rathi Steel and Power, Gagan Sponge. Congress MP Naveen Jindal and former Minister of State for Coal Dasari Narayan Rao have also been booked for alleged cheating and graft.