Coalgate probe: CBI summons former coal secy Parakh

Parakh likely to be grilled about allocation of Talabira-II coal block

The Central Bureau of Investigation (CBI) on Tuesday summoned former coal secretary P C Parakh for questioning on Friday in connection with a case of alleged abuse of official post in the granting a coal block in Odisha to Hindalco, a company of Aditya Birla Group.

Parakh, 69, critical of CBI’s action, specially of Director Ranjit Sinha for registering a case against him, is expected to be grilled on what led to the change of the decision of the screening panel, official sources said.

The panel had allotted the Talabira-II coal block to Public Sector Undertaking Neyveli Lignite but the decision was changed by Parakh after he had received a request by Group Chairman Kumar Mangalam Birla from Prime Minister’s Office for reconsideration.

CBI had last year registered a case against Parakh, Birla, besides unknown officials of Hindalco and coal ministry.

The agency alleged that during 2005, these persons entered into a criminal conspiracy and the then public servant (Parakh) abused his position and showed undue favour to the Odisha-based industry in allocation of Talabira II and Talabira III coal blocks along with the PSU.

According to the FIR, Neyveli Lignite Limited was to be given Talabira II block but Parakh allegedly favoured Hindalco and allowed it to share the block with Neyveli leading to notional loss to the exchequer.

Giving a clean chit to the PMO as well as Prime Minister Manmohan Singh that no pressure had been applied on him (Parakh), the former Coal Secretary had said in his book that the decision was taken for the better interest of the nation.

He had denied any quid pro quo as alleged by the CBI in its FIR about his meeting with Birla.