The CBI is investigating whether companies misreported their financial or technical qualifications to be granted valuable coal fields in possible collusion with government officials.
Two of the five companies booked today are linked to Congress MP Vijay Darda - he has 7% stake in Jas Infrastructure along with his son, Devendra. Mr Darda's son is also a director in JLD Yavatmal. Mr Darda told NDTV yesterday that he did not in any way influence the process of allocation.
The CBI is conducting raids in different cities including Kolkata, Patna, Hyderabad, Dhanbad, Nagpur, Mumbai and Delhi
The CBI's inquiry is rooted in a complaint filed by BJP leader Prakash Javadekar four months ago with the government's anti-graft department or Central Vigilance Commission (CVC). Then, last month, the government auditor or CAG said that 142 coal fields allocated between 2004 and 2009 had allowed private firms to get windfall benefits of upto 1.86 lakh crores because the coal mines were sold at highly undervalued rates, instead of being auctioned.
That has led to a huge political crisis, with the opposition BJP demanding the resignation of the Prime Minister and disrupting Parliament every day of this session, ensuring that virtually no business has been transacted. Uproar over the issue forced adjournments in both Houses of Parliament today as well.
The CBI's raids are unlikely to make any headway into breaking the Parliament deadlock, since the BJP is adamant on the cancellation of allocation of all 142 coal blocks mentioned in the auditor's report, which the government has declined. Finance Minister P Chidambaram said yesterday, " The demand for cancellation of all 142 coal blocks allocated after 2004 is not founded on sound logic...It (cancellation) cannot be done through diktat or arbitrary orders. There is a procedure for it and that procedure is underway."
The CBI, according to Press Trust of India, has also examined the track record of some of the companies which were allotted coal blocks in Jharkhand, Chhattisgarh and Karnataka. Some firms are being studied for whether they were set up only to land coal fields which were then sublet to other companies at a premium, in violation of all guidelines.
The agency, according to Press Trust of India, has already questioned senior bureaucrats who were overseeing allocation of coal blocks during 2005-09.
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Edited By Cen Fox Post Team
