

Coal mafia is not outside the Government but it exists within the Ministry of coal, wrote former Coal Secretary PC Parakh in 2005 when he was hounded by the Government for questioning several controversial decisions and directives.
Parakh was replying to Cabinet Secretary BK Chaturvedi’s five-page show-cause notice after then Coal Minister Sibu Soren and his deputy Dasri Naryana Rao complained to Prime Minister Manmohan Singh against his style of functioning and claimed he had no respect for political leadership. The show cause was served to “disobedient” Parakh on February 12, 2005.
In his eight-page long reply to the Cabinet Secretary dated March 22, 2005, Parakh exposed how the political leadership arm-twisted bureaucrats and sabotaged the proposal for conducting transparent auction of coal mines. The letter shows the rot in the Coal Ministry and helplessness of a bureaucrat who tried to take on the system.
While Soren complained to the PM that since he was an ‘Adivasi’, Parakh disrespected him, Rao, who belongs to Congress and remained in Coal Ministry for full five years during the UPA-1, accused Parakh of not sharing the details of Screening Committee agenda.
Parakh said both ministers put pressure on him to block CBI’s applications for Sanction for Prosecution on several tainted officials. Rao has already been named in the FIR by the CBI for irregularities in allocation of coal blocks to Congress MP Naveen Jindal’s firms.
“There is no gainsaying that I have had difference of opinion with both Minister of State and Cabinet Minister on several issues of policy and administration. I have found nothing of substance in the note for which I can be faulted. …In my understanding I have performed my duties in the manner that is expected of member of Civil Service. As a Secretray to the Government, I am deeply conscious of the fact that I cannot effectively discharge my responsibilities without full political support from my Ministers. However, I am at a loss to understand as to what could be done,” said the covering letter of Parakh, giving point-by-point rebuttal to the allegations of the two Coal Ministers.
“As regards dealing with coal mafia, the Minister perhaps has far more knowledge about operations and strength of coal mafia as he comes from a State where stronghold of the coal mafia is strongest. Coal mafia is not outside the Government. It exists within the Ministry of Coal, Coal companies, trade unions, State administrations and local political leadership. There are no easy and short cut solutions to the problem of coal mafia in the current political and administrative milieu of the country.
“Dealing with coal mafia required strong political commitment at Central and State governments’ level and ability to effectively enforce law and order which does not exist. I had no solution to offer to the Minister apart from bringing about structural changes in the operations of coal industry for which Ministers have shown great reluctance,” said Parakh, explaining the changes he proposed to Ministers.
Former Coal Secretary, who was widely considered as a whistleblower in the coalgate, has also explained the measures to bring transparency in coal allocation, which were blocked by political bosses. His first suggestion to UPA government from its very beginning was competitive bidding in allocation of captive coal blocks, marketing of Coal through internet based e-auction and streamlining process of project approvals.
Responding to MoS Rao’s allegation for not showing screening committee agendas on allocation of coal blocks, Parakh said: “Screening Committee consisting of representatives of various Ministries has been deliberating and deciding allocation of captive Coal mining blocks for the last several years. Agenda notes and minutes of these meeting were never submitted for approval of the Minister. Minister, however desired that agenda notes of minutes of the meeting should be submitted to him. Approval of agenda notes and minutes by Minister does not serve any useful purpose. In fact, it is a strange request that the minutes of the meeting to which Minister is not a party should be approved by him. However orders of the Minister were promptly complied with.”
On various occasions, the Ministers asked Parakh to toe their line. Prakah says he never agreed to any oral orders and insisted for written orders, which made them angry. “Entire five page note (show cause of the government) does not refer to a single instance where I have bypassed the Ministers or not implemented any written orders issued by them. I have always been polite and courteous in my written and oral communications with the Ministers and complied with all written orders even when I had serious difference of opinion.
“However, if respect for political leadership implies complying with oral orders or recording notings that suits Minister’s interest, as against public interest, I am perhaps guilty of alleged short-comings,” said Parakh.
The former Coal Secretary details how both Soren and Rao blocked his approval to CBI for prosecuting MK Thapar, CMD of South Eastern Coalfields limited. He said tainted officials caught for corruption by CBI and CVC were protected by the political masters, though he objected on record.
Soren wanted to re-install NK Sharma as CMD of Coal India, who was suspended by the NDA Government in June 2003 for corruption. Parkah wrote that even many MPs demanded re-installation of Sharma. Parakh’s attempts to start recruitment procedures for the new chief of Coal India were blocked by Soren.
The JMM supremo resigned from the Coal Ministry on August 2004 due to a court order on a murder case. But he again landed back in the Ministry in November 2004 and again resigned on February 2005 after adverse court order.
On his return to the ministry, Soren was furious at Parakh for appointing Shashi Kumar as new chief of Coal India during his brief exit. The former Coal Secretary said Soren wanted one VK Singh as CMD by fabricating Shahsi Kumar in frivolous charges. Narrating the hardships to honest officers, Parakh said: “personal and professional integrity does not matter and officers with resources or right connection can get away with anything in Coal Ministry and Coal companies.