Coalgate: Court refuses CBI closure report, directs further probe

The scam involves Congress Rajya Sabha MP Vijay Darda who allegedly misrepresented facts in letters written to then PM Manmohan Singh

A court on Thursday refused to accept a closure report by the Central Bureau of Investigation (CBI) and directed it to further investigate an alleged scam in coal blocks allocation, involving Congress Rajya Sabha MP Vijay Darda, saying he had misrepresented facts in letters written to then Prime Minister Manmohan Singh.

Special CBI Judge Bharat Parashar asked the agency to file a progress report of its probe on December 19.

Darda had misrepresented facts in various letters written to Singh, who was also holding the coal ministry portfolio, seeking the latter’s “help” to get allotment of Fatehpur (East) coal block in Chhattisgarh in favour of JLD Yavatmal Energy Pvt Ltd, the court said.

Declining to accept CBI's closure report filed in a case in which it had lodged an FIR against Darda, who was also a Director of JLD firm, and others, the court said that "prima facie" offence of cheating was committed by private parties in furtherance of conspiracy hatched between them and the public servants.

"As regard Vijay Darda who was Chairman of Lokmat Group, it has come on record that he wrote a number of letters to the Prime Minister seeking allotment of Fatehpur (East) coal block in favour of M/s JLD," the court said.

Darda at that time was a sitting Member of Rajya Sabha and he too had specifically claimed in his letter dated June 18, 2007 and August 6, 2007 addressed to the then Prime Minister that M/s JLD was promoted, managed and controlled by Lokmat Group and IDFC.

"Thus once again there was a clear misrepresentation at different forums by Vijay Darda on behalf of M/s JLD to claim allotment of yet another coal block," the court said in its 41-page order.

Regarding the alleged roles of public servants, the court said "prima facie" it was evident that the Ministry of Coal and Screening Committee were "inclined to allot the impugned coal Block at Fatehpur (East) to M/s JLD at all costs".

"Thus in these circumstances, the decision makers who were having dominion over the nationalized natural resources of the country i.e coal blocks, have to take responsibility of the consequences," it said.

Accordingly, the conclusion drawn by the investigating agency to close the case "cannot be accepted" the judge said.

CBI had filed closure report in the case in which FIR was lodged against JLD Yavatmal Energy Ltd, its directors Vijay Darda, his son Devendra Darda, Rajendra Darda, Manoj Jayaswal, Anand Jayaswal and Abhishek Jayaswal and other unknown persons.

The FIR was registered against them under sections 420 (cheating) and 120 B (criminal conspiracy) of the IPC.