CBI court discharges former coal secretary, 4 others in coal block allocation case

The Rouse Avenue court on Monday discharged former coal secretary HC Gupta, the accused company and other accused, including R K M Powergen Private Ltd., in a coal block allocation case.

While discharging the accused, the court stated that the recommended allocation of the Fatehpur East Coal Block to the most meritorious and deserving company (the accused company) is in the public interest.

Special CBI Judge Dheeraj Mor, on October 31, discharged five accused, including former Coal Secretary HC Gupta, former Joint Secretary K S Kropha, and three others.


Considering the above detailed discussion, all five accused persons, namely M/s R.K.M. Powergen Pvt. Ltd (RKMPPL).; Managing Director Dr. Andal Arumugam, Director T.M. Singaravel, H.C. Gupta, and K S Kropha are entitled to be

discharged for the respective offences alleged against them in the charge sheet. Accordingly, they all are ordered to be discharged," Special Judge Mor ordered on October 31.

While discharging the accused persons, the court observed, "The recommendation of the 35th Screening Committee for allocation of Fatehpur East Coal Block to the most meritorious and deserving company (accused no.1 company) is an act in

public interest. Therefore, there is not even an iota of material available on record to suggest that the act of accused public servants was without public interest, the court added.

" Hence, the essential ingredient of offence punishable under Section 13(1)(d)(iii) PC Act is conspicuously missing," the court said in connection with the role of public servants.

Advocate Rahul Tyagi had appeared for HC Gupta. He opposed the allegations levelled against him.

Earlier, the CBI had registered an FIR on 7th August 2014 under Section 120B read with Section 420 of the Indian Penal Code, 1860 and under Section 13(2) read with Section 13(1)(d) of the Prevention of Corruption Act, 1988 against M/s. R.K.M. Powergen Private Limited Company, its Promoters/Directors.

The Members of the 35th Screening Committee were constituted by the Ministry of Coal, including unknown public servants from the Ministry of Coal, in the matter of allocating the Fatehpur East Coal Block to the said company by the Ministry of Coal. K. S. Kropha was the convenor of the 35-member screening committee.

It was alleged that RKMPPL was incorporated by the promoters of M/s R.K. Powergen Private Ltd. on December 15 2004.

It had claimed its net worth of Rs . 2,752 Crores in its subsequent application by adding the net worth of Rs . 171.12 Crores of M/s Mudajaya Corporation Berhad, Malaysia, Rs . 2,414.71 Crores of M/s Mulpha International Berhad, Malaysia, which was holding 22.8% shares of MJC, and Rs . 142.86 Crores of M/s TCP Limited.

It was also alleged that none of the said companies had any equity participation in RKMPPL as on the date of application or on the date of allocation. Therefore, the benefit of their net worth could not be given to the company as per the guidelines of the Ministry of Power.