Coal scam: SC asks CBI not to share probe details with govt

More coal blocks are likely to be deallocated if any irregularity is found in the allotment process

The United Progressive Alliance (UPA) government appears to be headed for a trouble similar to the one it faced in the telecom scam. The Supreme Court on Tuesday directed the Central Bureau of Investigation (CBI) not to share the details of its coal scam findings with politicians or the executive.

The court is also set to examine the legality of coal block allocations to see if the declared policy was followed and if no criminality was involved. “If we find the procedure was not followed, the entire allocations will go,” the court warned, echoing the proceedings of the 2G spectrum case, in which 122 licences were cancelled last year.

CBI has been investigating coal block allocations to private- and public-sector firms over the past three decades. The judges referred to its report and remarked the investigating agency could not find a uniform policy in the matter. The scrutiny of files containing minutes of 34 meetings of the screening panel that allotted the blocks did not follow any rationale. Even assuming the allocating authorities had the competency to do so, the way it was done was “irrational and arbitrary”, the judges said.

CBI had handed over a status report in a sealed cover to a three-judge bench headed by R M Lodha. Attorney General G E Vahanvati denied any arbitrary policy was adopted, saying: “CBI is not the final word on this.”

CBI, which has filed cases against 10 firms and their executives in the case so far, and the government were seen differing on the probe in the scam. The agency now has three preliminary inquiries going on, covering allocations since 1993. It has obtained 700 files running into 160,000 pages.

The government received severe tongue-lashing from the judges, who remarked there were 2,100 applications but the government had given 218 blocks to 68 companies.

The court was hearing two public interest suits — one moved by Common Cause and another by M L Sharma, a lawyer. These were filed soon after the scam came to light last year, seeking independent probe by a special team, watched over by an SC judge.

The next hearing will be after three weeks, by when the government can file further affidavit stating its defence.

Of the 206 blocks allocated, 30 are under production. The government has deallocated 47 due to slow progress since early last year.