BackSupreme Court stays trial court summons to Manmohan Singh, KM Birla
Legal developments surrounding former PM could still bring back issue of corruption against the Congress
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New Delhi: The Supreme Court on Wednesday stayed summons issued to former prime minister Manmohan Singh, industrialist Kumar Mangalam Birla, former coal secretary P.C. Parakh and two Hindalco Industries Ltd executives in a case over the allocation of a coal block in Odisha.
In a related matter, a Supreme Court bench comprising justices Gopala Gowda and C. Nagappan also issued notices to the Union government on a plea challenging the constitutional validity of section 13 (1)(d)(iii) of the Prevention of Corruption Act.
The section makes it a criminal misconduct for a public servant to obtain for another person or company something valuable or monetary advantage without public interest.
Although the stay order comes as a temporary relief for the beleaguered Congress party, the legal developments surrounding the former prime minister could bring back the issue of corruption against the party.
Singh, who recently launched the party’s app-based membership drive, has come under the scanner for the coal block allocations made during the second term of the Congress-led United Progressive Alliance.
The Congress, which faced a severe drubbing in the general election held last year, has been isolated in Parliament in the first half of the budget session. With its vice-president Rahul Gandhi away on a sabbatical, the problems for the party have compounded.
Prime Minister Narendra Modi on Wednesday released a report card on the Bharatiya Janata Party (BJP)-led National Democratic Alliance completing 10 months at the centre, and pointed out that there has not been a single allegation of corruption against his government so far.
“The government recently auctioned 20 coal mines and received ₹ 2 lakh crore. We have converted coal into diamonds. It was because of large-scale corruption that the Supreme Court cancelled the licences of 204 coal mines; the government has only auctioned 20 till now. This money will go to the states so that (their) governments will focus on development," Modi said in Rourkela.
Kapil Sibal, former minister and the lawyer representing Singh, said that there was no illegal act involved in the allocation of a block to a private company, in pursuance of competing public interest of utilizing coal.
He added that despite two closure reports of the Central Bureau of Investigation (CBI) in the case, the special court judge Bharat Parashar had based his summons on his own observations, which was not allowed in law.
Sibal argued the total coal reserves in Talabira II and Talabira III blocks, which were allocated together, were 503 million tonnes, of which 70% was to go to Mahanadi Coalfields Ltd. Hindalco was to get only 15%.
“What is the illegal act of the petitioner (Singh)? It is not illegal to allot a mine. It is not illegal to allot to a private party. There is no statutory prohibition (regarding allotment). There is no constitutional prohibition. There is no criminal case if there is no illegality," Sibal said in court.
Lawyers for Singh and Birla did not spare Parashar in their arguments before the court. Lawyer and senior Congress leader Abhishek Manu Singhvi, arguing for Singh, said that the judge had a “predisposition of mind" to summon these people as accused.
The lawyers also said the former PM, who also held the coal ministry portfolio in 2005, had in fact gone against the decision of the screening committee’s recommendation. Sibal said that the apex court had held that the screening committee was a body “unheard of in law", and the trial court could not rely on its decision and give it a “colour of legality".
The BJP was measured in its response.
“It is part of the legal process, and it is in no way a vindication of any kind. It can be called a temporary reprieve for the former prime minister. It is possible that the Supreme Court wants to thoroughly examine the entire case before taking any further step," said G.V.L. Narasimha Rao, national spokesperson of the BJP.
Lawyer Harish Salve, speaking for Hindalco, said the company was challenging the provision of the Prevention of Corruption Act because if this provision did not require furnishing proof of criminal intent by the public servant, it would be unconstitutional. This case will be heard with the other appeals against the special court order.
On 11 March, special court judge Parashar, hearing the criminal cases arising out of the allegations of irregularity in coal block allocations from 1993-2010, had summoned Singh, Aditya Birla Group chairman Birla, Parakh and two Hindalco executives—Hindalco executive D. Bhattacharya and group executive president of Aditya Birla Management Corp. Pvt. Ltd Shubhendu Amitabh—over charges of criminal conspiracy and corruption. They were required to be present in the special court on 8 April. But the special court order remains suspended pending the apex court ruling on these petitions. Parashar had said that on the face of it, there was enough evidence to summon these people, along with Hindalco, the company which got the block.
On 16 December, the special court had directed CBI to examine Singh further in relation to the allocation of Talabira II coal block in Odisha.
The case in the trial court related to the allocation of the allotments of Talabira II and Talabira III coalfields in Odisha to a joint venture between Hindalco, Neyveli Lignite Corp. Ltd and Mahanadi Coalfields in 2005.
“It was an ex parte order, where only one side is heard. Given the fact that Dr Manmohan Singh was not named as an accused in the FIR (first information report) or in the closure report, despite constant prodding to the CBI, there had to be extraordinary material to summon him as an accused. Perhaps the Supreme Court felt that this required consideration as to whether there was enough material to summon him. To that extent, I think it’s a correct order," said lawyer Rebecca John, who works on criminal cases.
Gyan Varma and Anuja contributed to this story.
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