Hindalco probe may lead to 'competent authority'

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Clarification and clean chit by the Prime Minister's Office to Aditya Birla Group company Hindalco in the controversial allotment of coal blocks has made it clear that the “highest office” was the “competent authority”, and the CBI feels investigation into the case could ultimately lead to the questioning of the Prime Minister himself.

The CBI on Tuesday wrote a letter to the PMO seeking all the files related to the allocation of the coal block to Hindalco.The latest FIR registered by the CBI in connection with the coal scam has mentioned that the “competent authority” had referred two letters written by Aditya Birla Group Chairman Kumar Mangalam Birla to the PMO requesting for allocation of Odisha-based Talabira II coal block to Hindalco, to the Coal Ministry.

PM Manmohan Singh was in charge of the Coal Ministry at the time of the rejection of Hindalco’s application for the coal block and subsequent allocation. In its statement, the PMO has also admitted that the PM was holding the charge as Coal Minister in 2005 when the decision was taken and had defended the allotment of the coal block to Hindalco.

CBI sources also said the Screening Committee was only a recommending body and the PMO was the decision-making authority in respect of coal block allocation to Hindalco.

“Since the PMO has defended the coal block allotment to Birla and not denied that PM himself was involved in the decision-making, we may have little option to but to examine PMO officials and PM himself,” said a CBI official.

According to the CBI FIR, “Enquiry also revealed that while the recommendations of Screening Committee were being approved by the competent authority, it received letters dated 07.05.2005 and 17.06.2005 from Shri Kumar Mangalam Birla of M/s Hindalco Industries ltd requesting for allocation of Talabira II coal block, which were forwarded to the Ministry of Coal.”

The FIR also said, “The recommendation of the 25th Screening Committee to allocate coal blocks Talabira II and Talabira III coal blocks to M/s Mahanadi Coalfields ltd and M/s Neyveli lignite Corporation ltd along with certain proposals for amendment of guidelines was placed before the competent authority who approved the proposed changes in the guidelines and directed that the minutes of the 25th Screening Committee may be considered in the light of the amended guidelines and approved at the level of Secretary (Coal). Accordingly, PC Parakh, the then Secretary (Coal) vide his note dated June 16, 2005 directed to issue allocation letters by July 15, 2005.

The FIR clearly mentions that Parakh was acting at the behest of the PMO.“Enquiry further revealed that Shri Kumar Mangalam Birla met Shri PC Parakh, the then Secretary (Coal) during July, 2005 and requested for the allocation of Talabira II coal block to M/s Hindalco Industries ltd.

Pursuant to these letters and the personal meeting between Shri PC Parakh, the then Secretary (Coal) and Shir Kumar Mangalam Birla, Shri Parakh, by abusing his official position as a Public Servant recommended the allocation of Talabira II along with Talabira III coal block to M/s Hindalco along with other two companies without any valid basis or change in circumstances and with the sole intention to show undue favours to Hindalco,” the FIR has alleged. 

Sources indicated that Birla and Parakh will be examined first and after scrutiny of the files received from the PMO, the agency will decide on examination of the PM. The agency will also examine the officials who processed the recommendation letters issues by PMO and Odisha CM Naveen Patnaik.

Reacting to CBI's action, Minister of State for PMO V Narayanasamy said, “We have nothing to hide and have already given thousands of documents to the agency.”

The CBI has said in a statement that it would probe every aspect of the case mentioned in its FIR before taking any call on the future course of action. As of now, the investigation is going on. We will probe every aspect of the FIR before a future course of action is decided.”

CBI Director Ranjit Sinha has also said that whosoever will be required for investigation will be questioned. Sinha has also indicated that if there is no material evidence, the agency will file a closure report after informing the Supreme Court.

Parakh has contended that while he did make the recommendation for allocation of the block to Hindalco, it was the Prime Minister who took the final decision on it and the CBI should have made him an accused in the case.

Daily Pioneer
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