SC asks CBI to file 'Coalgate' probe status report

Court asked AG how Centre can allot coal blocks when ownership of minerals vests on states

The Supreme Court today asked the CBI to file an affidavit on the status of its investigation into the 'coalgate' scam. The order came in a public interest petition by eminent people under the banner of Common Cause seeking the cancellation of leases of coal blocks issued to selected corporations, citing the report of the CAG.

CBI counsel Hiren Raval told the bench headed by Justice R M Lodha that the probe was “comprehensive and broad-based” and nothing will be kept back from the court. He wanted the CBI to be excused from court monitoring. The judges said that “it is not the first time the court has asked for status reports from CBI on its investigation, nor will be the last time.”

The PIL counsel Prashant Bhushan, on the other hand, wanted the court to monitor the investigation and if the court was not satisfied, there should be a special investigation team  (SIT) to go into the serious allegations. The scam broke out nearly eight months ago, and the CBI has nothing to show regarding its investigations, he argued.

The judges wanted counsel to examine the 1988 decision to cancel petrol pumps illegally allotted to politicians and their favourites by the then Petroleum  Minister Satish Sharma. That case will shed light on how the court has exercised its power in distribution of natural resources. The more recent judgment cancelling 2G spectrum also will be discussed at the next hearing on March 12.

The court asked Attorney General G E Vahanvati to explain how the centre can allot coal blocks when the Mines and Minerals Development and Regulation Act vests the ownership of minerals  on states. The power of the Centre under that law to grant approval cannot override the statutory mechanism. This issue was being examined by the court in another case involving Posco. Therefore, the court wanted the Attorney General to make clear the Centre’s power in allocation of coal blocks.

In September, the court had framed several questions regarding the coal allocations, like why competitive bidding process was not followed, what were the guidelines for allocation of coal blocks and whether there was any deviation during actual allocation and why so many politicians and their relatives figure among the alleged irregular allottees?