CoalGate The coal allocation scam is also referred to as the CoalGate scam. This was a scam in India that shook the nation when it came to light. Coal Scam This is the responsibility of the Indian government and that is why all the burden was on their shoulders. This is the CAG.
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What is coal scam? A report by the Comptroller and Auditor General of India showed inefficient and possibly illegal allocation of coal blocks between and Gupta, former joint secretary in Coal Ministry K. Kropha and former director of Coal Ministry K. Samaria two years in prison for their involvement in the Coal Scam. They were, however, granted bail on the same day and could now challenge the sentence in High Court.
Among the charges, one of the prime offences was abuse of public office, securing pecuniary advantage without public interest and criminal conspiracy. Coalgate, as it was popularly known snowballed into a huge political scandal which pulled top leaders and bureaucrats from the previous UPA regime into the probe.
It estimated loss to the exchequer to the tune of Rs The central point of the CAG report that showed improper allocation was that the government had the authority to allocate the coal blocks.
However, this was to be done via competitive bidding. But the government chose to take another route and avoided competitive bidding, the CAG report said.
CAG observed the revenue secured from the allottees for allocation was much less than what could have been if there was competitive bidding—hence presumptive loss to the exchequer.
The presumptive loss was factored in to estimate the windfall gains to allottees first at Rs He had also said that the observations of the CAG were disputed.
At least a dozen companies were named in the FIR that resulted in a criminal investigation. Accusations ranged from malicious means for securing allocation, overstating net worth, non-disclosure of prior allocation and hoarding rather than the development of allocated resources. A report of the parliamentary standing committee said that the allocation of blocks between and had been unauthorised.
It recommended deallocation of all blocks where construction had not started and forfeiture of bank guarantees in others. Over the course of the investigation, Supreme Court constituted a special court to try all cases related to the coal scam. Click here to join our channel indianexpress and stay updated with the latest headlines For all the latest What Is News , download Indian Express App.
The ministry has been facing intense flak over alleged irregularities in allocation of coal blocks since and the Central Bureau of Investigation CBI is currently investigating the abnormalities and criminal conspiracy in their allotment. The agency has filed 14 FIRs and two preliminary enquiries so far in this connection. In this backdrop, an inter-ministerial group IMG of the coal ministry met on 24 October to consider the fate of 30 coal blocks, including those being investigated by the CBI. All allottees had been issued show-cause notices and were asked to furnish their views to the IMG.
7 things you wanted to know about 'Coalgate'