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Business News/ Politics / Policy/  Coal scam: SC dismisses petition seeking Manmohan Singh’s explanation
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Coal scam: SC dismisses petition seeking Manmohan Singh’s explanation

Move a breather for PM; CBI, govt continue to take opposite sides on more autonomy for agency during hearing

The case has become larger with issues related to CBI’s autonomy also being heard by the Supreme Court. Photo: MintPremium
The case has become larger with issues related to CBI’s autonomy also being heard by the Supreme Court. Photo: Mint

New Delhi: The Supreme Court on Tuesday rejected a petition seeking a direction that Prime Minister Manmohan Singh be asked to file an affidavit explaining his role in the controversial coal block allotments when he was heading the coal ministry.

The move is likely to provide a breather of sorts to Singh, who held the coal ministry for some time between 2006 and 2009, and his United Progressive Alliance (UPA) government. Both have been facing the heat over allegations of irregularities in the allotment of coal mines.

India’s federal investigation agency, the Central Bureau of Investigation (CBI), is looking into the allotment under the supervision of the apex court.

The probe follows a public interest litigation (PIL), challenging the coal block allotments between 1993-2010 and a report by the government’s auditor.

The case has become larger with issues related to the autonomy of CBI also being heard by the court after it emerged that the agency’s original affidavit to the court had been vetted by the government.

Tuesday’s hearing saw the government and the agency clashing, with the former rejecting the latter’s proposal regarding more autonomy.

The three-judge special bench, headed by Justice R.M. Lodha, dismissed the petition regarding the Prime Minister, according to the order dictated in the open court.

The petitioner, advocate M.L. Sharma, had also asked that all letters of recommendations, written by the different state governments, ministers and other politicians, advocating block allotment to certain private firms be produced in court. These letters were addressed to the Prime Minister’s Office.

People familiar with the case said the letters of recommendation are important as they are likely to clarify whether the central or the state government made strong cases for allotment to companies and private firms.

In the same hearing, the CBI and the government once again took opposing positions on the issue of granting greater autonomy to CBI. In an affidavit submitted to the court on 27 August, CBI had proposed that its director should have the rank of a secretary to the government. The director currently holds the rank of a director general of police.

Solicitor general Mohan Parasaran said “the government is strongly opposed" to the idea and that such a move will “permit the CBI to bypass other channels".

The court directed the government to file a written response to the effect.

“The government does not seem agreeable (to the proposal) and the CBI must be told valid reasons for that. If you are opposed, file a written response," said Justice Lodha. Representing CBI, advocate Amrendra Sharan said the government is trying “to keep the CBI within its own stranglehold" and that irrespective of political regime, all governments have defied attempts to make CBI independent.

CBI had also suggested that its director should report directly to the minister, department of personnel and training (DOPT), “without having to go through the" DOPT, which is the agency’s administrative ministry as this would enable CBI to “bypass red tapism". The CBI had also proposed that it should be permitted to appoint special counsels, instead of seeking approval of the ministry of law and justice, as suggested by the government. The government has also disagreed with this plan.

On Tuesday, following the court’s order on 26 September, four states filed responses to specific questions on the allotment. The court’s queries pertain to the states’ understanding of coalfield allotments, their own role in this and the status of joint ventures entered into by state-owned firms with private firms allotted the mines. Out of the seven states which received the court’s notice, Jharkhand, Chhattisgarh, Odisha and West Bengal filed affidavits. Maharashtra, Andhra Pradesh and Madhya Pradesh are yet to do so.

CBI also filed its sixth status report on its probe into coal mine allotments, running into 180 pages and containing details of progress made in the probe. In August 2012, the Comptroller and Auditor General, the government’s auditor, said the allotments between 2005 and 2009 caused notional losses to the tune of $1.86 trillion to the national exchequer.

Between October and December, the government cancelled the allotment of at least 15 coalfields and encashed the bank guarantees of at least 14 other allottees on grounds that they had failed to develop them. On 23 April, a parliamentary panel that reviewed the allotments process said in a report that allotments since 1993 should be cancelled.

Sharma’s petition also sought similar affidavits from former coal minister Shibu Soren and current minister Sriprakash Jaiswal, detailing their role in the allotment of mines.

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Published: 29 Oct 2013, 04:15 PM IST
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