How the coal scam unfolded

A step-by-step analysis of how the coal block scam was unraveled
A PRIMER TO THE CASE

Jan 10, 2005

The screening committee allotted the Talabira-II coal block in Odisha to Nevyeli Lignite Corporation (NLC), a PSU, overlooking Hindalco’s claim.

Aditya Birla Group Chairman KM Birla submitted two letters to then PM Manmohan Singh on June 7 and July 17, 2005 requesting this block.

PMO forwarded Birla’s letters to Ministry of Coal. sent four written reminders and telephonically pursued six times. Birla met Coal secretary PC Parakh in July.

PM Singh overturned the earlier decision on Parakh’s recommen-dation and Talabira II allotted to NLC, Hindalco and Mahanadi Coalfields after they form a JV. The decision not taken back to screening committee, which Parakh headed.

CBI registered a case in 2013, closed it last year saying the government’s change in decision was “in national interest” and PM exercised his discretion after Odisha CM had pitched for Hindalco.

CBI court rejects closure report; now says Birla, Parekh and Manmohan Singh colluded to accommodate Hindalco in the coal block.

THE OFFICERS WHO OBJECTED

COAL MINISTRY SECTION OFFICER PREMRAJ KUAR

Wrote a note after Birla wrote to the PM, saying it will not be possible to accede to the request of allocation of Talabira-II to HINDALCO. However, the note was overlooked/not approved at the higher levels.

DEPUTY SECRETARY, PMO, KV PRATAP

Parakh recommended forming a joint venture between MCL, NLC and HINDALCO, giving a share of 70%, 15% and 15%. Pratap’s note said this is against existing approved guidelines and equity holding of NLC and HINDALCO should be 22.5% and 7.5%.

PMO JOINT SECRETARY JAVED USMANI

Forwarding Pratap’s note, Usmani reiterated that acceptance of Parakh’s proposal would entail relaxation in the existing guidelines. However, PS to Singh, TKA Nair, and Singh approved Parakh’s proposal by putting their signatures .