SC issues notice to CBI and Centre on Coalgate

NEW DELHI: The Supreme Court on Monday issued notices to the government and the CBI on a fresh PIL seeking cancellation of all coal blocks allotted to private companies since 1993 and a thorough probe into the allocations by an independent agency such as a court-appointed SIT.

The PIL, filed by NGO Common Cause, is championed by lawyer Prashant Bhushan. The new petition points fingers at the PMO, the coal ministry, which worked under the PM, the ministry of steel and power and various governments where the coal blocks are located.

It has been filed on behalf of several leading citizens such as former bureaucrat TSR Subramanian, N Gopalaswami, R Ramaswamy R Iyer, Admiral RH Tahiliani and Admiral Ramdass among others.

The PIL alleges that the CBI probe so far "does not cover the full amplitude of the scam in the coal block allocation".

"... it only covers allegations of misrepresentation by allottee companies. The enquiry and FIRs by CBI cover only a miniscule of the criminal conspiracy of high-level public servants, under whose authority officials of the CBI are bound to function," it says.

An earlier PIL filed by Manohar Lal Sharma, who also challenged FDI in retail, had sought an independent inquiry for fixing responsibility of the scam. But the court had not yet issued notices to the CBI on this.

On Monday, however, on the Common Cause petition, it issued notices to the CBI. "Lack of objectiveness and unfairness, we will examine," Justice RM Lodha said.

Justice Lodha also said that any coal block use also has to be within the requirements of a public sector undertaking. Whether it is a joint venture or not, the reservation must meet the requirements of a public sector undertaking, he said.

The two-judge bench, comprising Justices RM Lodha and Anil R Dave, has in another PIL filed by Manohar Lal Sharma, already asked the government to explain how allocations were only made to well-connected persons.

"You may have a well laid-out policy, but is it a coincidence that all the allottees are only politicians' family, friends and associates," the bench had observed.

The government is yet to file an affidavit explaining the court's questions on its allocation policy.

On Monday, the court gave the government another eight weeks to explain its position on the issue and listed the cases together for further hearing on January 24, 2013.