CBI begins verification of coal block scam complaint

New Delhi, Jun 1 (ANI): The Central Bureau of Investigation (CBI) has begun verifying allegations of irregularities in the allocation of coal blocks to private companies between 2006 and 2009 and their misuse by them.

The agency confirmed that it has received the complaint of BJP leaders Prakash Javadekar and Hansraj Ahir from the Central Vigilance Commission.

The complaint alleges that the UPA II Government adopted a first-come-first-serve basis for allocation of coal blocks to benefit some private companies.

CBI sources said the complaint does not contain the names of individuals nor mentions individual companies said to be involved in the alleged scam.

"We are happy that the CVC has taken cognisance of our complaint. The CVC has written to us saying your complaints have been duly examined in the Commission having regard to the issues raised therein and the same has been forwarded to the CBI for a preliminary inquiry," Javadekar, who was accompanied by Ahir, told reporters.

Their complaint also alleges that there was a delay of nearly two years in the auctioning process and claims that the ministry had done so to benefit some private players.

The complaint also alleged that allocation of blocks to 156 companies was improper, as they had handed over operations to other companies at a premium.

It is also alleged the allottees of coal blocks did not start production themselves and outsourced the operation to third parties at a premium and pocketing the benefit.

Ahir alleged that the price of 1,700 crore metric tonne of coal worth Rs.51 lakh crore was given almost free to private companies.

In a statement last year, the BJP had alleged revealed that 51 companies were allotted coal blocks in 2006, 19 companies in 2007, 41 companies in 2008 and 32 companies in 2009, at a rate of Rs.50 per metric tonne. (ANI)