CBI files fresh case against Hindalco

After registering the case, the probe agency carried out search operations at four places on Friday

The Central Bureau of Investigation (CBI) on Friday registered a fresh case against Indal (now Hindalco, an Aditya Birla Group company) and unknown public servants, alleging unauthorised use of coal in the company’s Talabira-I coal block in Odisha.

“Allegations are the coal was used in an unauthorised manner in the existing power plant, whereas allocation was done for expanding the capacity of the new power plant. Further, mining was started without a mine-opening permission,” CBI sources said.

The agency also alleged public servants had “facilitated” the unauthorised use of coal by not taking any action against this despite being aware of the goings-on.

After registering the case, the CBI carried out search operations at four locations — one in Mumbai and three in Sambalpur, Odisha, CBI sources said. The agency had seized incriminating documents during the search, they added.

“As is known, the CBI has been investigating the coal block allocations made since 1993, under the monitoring of the Supreme Court. With regard to the allocation of 15 per cent share to Hindalco in Talabira-II and III coal mines, the CBI has already filed a closure report,” said an Aditya Birla Group spokesperson.

“In continuation with its investigation into 185 coal mines across industry, the CBI has now begun investigation into Talabira-I, a mine allocated in 1994 to the erstwhile Indal, later acquired by Hindalco. In this connection, the CBI carried out searches at three of the company’s sites. The Supreme Court has already cancelled the allocation of 204 coal mines to all the respective companies. The mines will be auctioned as announced by the coal ministry,” the spokesperson added.

The case relates to the allocation of the Talabira-I coal block in Odisha in 1994. The company was allotted the block for a 140 Mw power plant at Hirakud and one of 50 Mw at Raigarha.

The CBI is probing the allocation of the Talabira-II coal block to Hindalco, following a special court order in this regard. The agency is believed to have examined former prime minister Manmohan Singh, along with his colleagues in the Prime Minister’s Office. Though the agency had filed a closure report in the case, the court had rejected it and sought a fresh probe. The agency is scheduled to submit a status report in the matter on January 27.