Coalgate can of worms

With the session of the Parliament still remaining adjourned, the Coalgate scam seems to be opening up like a can of worms. The Central Bureau of Investigation (CBI) has named Congress MP Vijay Darda and 17 senior executives of five private companies in cases registered in connection with allocation of coal blocks. The five companies named in the First information Report (FIR) are — JLD Yavatmal Energy Limited, in which Darda was one of the directors, JAS Infrastructure Capital Private Limited, AMR Iron and Steel, Navbharat Power Private Limited and Vini Iron and Steel Udyog Limited. The agency raided 30 sites belonging to them in 11 cities across the country. Darda had recently stated that he was neither involved in any scam nor had any partnership with Union Coal Minister Sriprakash Jaiswal or Tourism Minister Subodh Kant Sahai on coal blocks allocations. CBI officials have indicated that more companies and people might come under the scanner,
The FIR registered after three months of the initial probe named the five firms, their directors and unknown Government officials as having indulged in misrepresentation and dereliction of duty. The CBI has registered five separate cases against certain private companies, their directors and unknown public servants on Sep 3, 2012, In a press release it said: “The cases have been registered in connection with the allegations related to getting coal blocks allocated on the basis of misrepresentations and false claims in the applications, presentations and connivance or lack of due diligence on the part of public servants.”
It is still premature to arrive at any final conclusion in regard to the searches made by the CBI of the residential premises of some of the allottees of coal blocks. However according to the sources preliminary inquiries have revealed irregularities against five companies. These generally pertain to misrepresentation or under stating of facts in the application and the companies not fulfilling the criterion set forth for making allotments.
Interestingly, the inquiry conducted by the CBI in the case has nothing to do with the suspension of Parliament session owing to the coal blocks allocation row. CBI is conducting the inquiry separate from that issue. Reacting to the stalemate caused by the opposition party in the Parliament, the Government has launched counter-attack on the former BJP-led NDA Government. The Government said there was a conspiracy behind the Bharatiya Janata Party’s demand to cancel 142 coal blocks given during 2006-09 and also asserted that officials of the companies who violated allocation rules would go to jail. It asserted that BJP was demanding en masse cancellation of the coal blocks so the aggrieved parties can obtain a stay from the court later on,” Coal Minister Sriprakash Jaiswal said. It does not want the inter-ministerial group to look into the performance of these companies,” he said. According to a Comptroller and Auditor General’s report, private players had made windfall gains worth Rs 1.85 lakh crore in the allocation of 142 coal blocks during 2006-09 by the United Progressive Alliance Government.
Coalgate issue is opening up layer after layer with each move either in the parliament or at the level of the CBI. The question is if the UPA Government had smelt rat in regard to allocation of coal blocks by the preceding Government led by BJP, why did it not take any action until the issue was opened dup by the opposition in the parliament? It remains a mystery that the counter- attack by the Government has come only when the preliminary inquiry by the CBI has revealed that there are certainly skeletons in the cupboard. These revelations disprove the claim of the Government that the CAG has outstripped its jurisdiction or that its report is not based on facts. As soon as the CAG report was known, official quarters tried to trivialize it and convey the message that the CAG was biased against the UPA Government.
Coalgate is one more big scandal among a number of scandals that have come to light in last two years. The UPA Government has been fighting to save its position in the light of these scams being used by the opposition to pillory the Government. In totality it has left very depressing impression on the mind of ordinary citizen. The Government may try to steer clear of any blame brought to its doorsteps but it will have to take cognizance of the fact that cumulative effect of these scams has taken away much from the popularity and appeal of the mainstream national party now in the lead of the coalition. Parliamentary elections are not far off and all national mainstream political parties will have to do much homework to make a mark in these elections.