CBI to probe coal block allocation to Sasan power project

NEW DELHI: The CBI has registered a preliminary enquiry (PE) to probe allocation of a coal block to a power project in Sasan in Madhya Pradesh run by Anil Ambani's Reliance Group, complying with a Supreme Court direction earlier to look into various issues arising out of the Niira Radia tapes.

A Reliance Group spokesperson said they welcomed the CBI enquiry. “We welcome the independent time-bound enquiries by the CBI, monitored by the Supreme Court, which will clearly establish our bona fides, and once and for all prove beyond doubt that we have been the unfortunate victims of a mischievous campaign of calumny and vilification conducted at the behest of our unscrupulous corporate rivals over the past five years,” the Reliance Group spokesperson said in a statement.

He added that the allocation of coal mines to the Sasan project was done to a 100 per cent governmentowned company in 2006 when Reliance Power “had not even won the project” and the government disinvested its shares to Reliance Power after a global tender in 2007.

“The use of surplus coal from the Sasan UMPP has been approved on two separate occasions by two empowered group of ministers (EGoM), headed then by Pranab Mukherjee. The Delhi High Court had also dismissed a petition in 2009 on this matter filed against the government by Tata Power (who was the client of the lobbyist spreading allegations in this regard),” the Reliance Group spokesperson said.

The allotment of coal blocks to Sasan power project run by ADAG Group was among the 14 issues identified by the Supreme Court for a CBI probe after a scrutiny of the Niira Radia tapes. CBI, which has registered 14 preliminary enquiries in the matter, has to file a status report in the Supreme Court before December 15. The CBI has lodged preliminary enquiries to probe alleged irregularities in the allotment of iron ore mines at Ankua, in Singhbhum district of Jharkhand to Tata steel in which former Jharkhand chief minister Madhu Koda has been named.