The CBI on Friday claimed that former Coal Secretary Parekh had failed to justify his decision to allocate a coal block to Hindalco after rejecting the company’s application earlier. The agency is also likely to register more FIRs in the coal scam.
Parekh was examined by the CBI during the course of the Preliminary Enquiry (PE) and the agency decided to register a regular case on Monday after he was unable to explain the reasons for taking a U-turn on his own decision in respect of allocation of Odisha-based Talabira II coal block to the Aditya Birla Group company, agency sources said.
Hindalco’s application was rejected by the 25th Screening Committee headed by Parekh but later on he allocated the block to Hindalco after a meeting with Aditya Birla Group Chairman Kumar Mangalam Birla in July 2005.
During examination Parekh was asked about the reasons for reversing the Screening Committee’s decision.
The sources claimed that Parekh could not explain under what circumstances he changed his own “considered” view and allowed Hindalco to get a share in Talabira II coal block which was already allocated to PSUs Mahanadi Coalfields and Neyveli lignite Corporation.
Parekh has, however, maintained that there was nothing wrong with the decision as Hindalco was the first applicant and equally competent to get the coal block.
The CBI is also investigating the officials who initiated the files for allocation of coal blocks to Hindalco. While Birla, an accused in the case, had written two letters to the Prime Minister’s Office, one on May 7, 2005 and the other on June 17, 2005 requesting allocation of the Talabira II block to Hindalco, Odisha Chief Minister Naveen Patnaik also made a representation to the PMO requesting allocation of the block to the private company.
Agency sources said recommendation letters in official parlance do not carry much meaning unless the same is moved on the files. Officials said it is being investigated as to who moved the file and how it was approved at different levels.
In its FIR, the CBI has alleged that after rejection of Hindalco’s plea in 2005, Birla wrote two letters and held a personal meeting with Parekh, after which the decision was reversed.
The FIR mentions Parekh, Birla and Hindalco as accused for criminal conspiracy and corruption.
This is the first FIR from the PE into allocation of coal blocks and awarding of contracts for formation of joint ventures by Government companies under the Government Dispensation Category from 1993 onwards, the sources said.
The agency is likely to register more cases in the coal scam before filing the status report on the probe next week. Apart from registering 14 FIRs, the CBI is probing three PEs including one for the allocations made from 1993 to 2004, one for the allotments between 2006 and 2009 and another for awarding blocks for joint ventures between PSUs and private companies.