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CBI seeks Hindalco files from PMO

Soon after filing the status report in Supreme Court on Tuesday, the Central Bureau of Investigation (CBI) wrote to the Prime Minister’s Office (PMO) seeking all records related to allocation of Talabira II coal block to Hindalco. This comes three days after the top office said Prime Minister Manmohan Singh had approved it on the basis of ‘merits’ of the case placed before him.

Former coal secretary PC Parakh and industrialist K M Birla were booked by the agency in coal scam for corruption and criminal conspiracy.

The FIR alleges that while the recommendations of the screening committee, which had rejected Hindalco’s application citing “valid reasons”, were being approved by the “competent authority”, it received letters dated 17 May, 2005, and 17 June, 2005, from Birla requesting allocation of the Talabira II coal block, which were forwarded to the Ministry of Coal.

It alleged that Birla met Parakh during July, 2005, requesting allocation of the block. “Pursuant to these letters and the meeting between Parakh and Birla, the former abused his official position and recommended the allocation of Talabira II along with Talabira III to Hindalco Industries without any valid basis or change in circumstances and with the sole intention to show undue favours,” it alleged.

Rebutting the allegations, a statement from the PMO indicated that the ‘competent authority’ referred to in the FIR was Prime Minister Manmohan Singh, who had been holding charge of Coal ministry in the said period.

‘The final decision differed from the earlier recommendation of the Screening Committee, and this was done following a representation received in the PMO from one of the parties,’ the statement said. It said the Prime Minister was satisfied that the final decision taken in the regard had been ‘entirely appropriate’ and based on the merits of the case placed before him.
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