The Jharkhand coal scam had hit the headlines in after an audit report by Comptroller and Auditor General of India (CAG) revealed that. The coal allocation scam, popularly known as ‘Coalgate’ in media. At the initial report of CAG only said that the blocks of coal could have been allocated with. The government’s thrust after the coal scam report by the Comptroller and Auditor General of India (CAG) is in the direction of cancelling allocations of coal.
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Madhu Koda and HC Gupta in another case pertaining to alleged irregularities in allocation of Amarkonda Murgadangal coal block in Jharkhand.
The CAG, Singh argued, had simply ignored the practical realities of policy implementation in their rreport that the Government did not move fast enough in transitioning to competitive bidding. Thus, using any reasonable discount cab, the Present value of the windfall gain will be dramatically smaller perhaps one tenth of the windfall gain stated in the CAG Report.
The court will announce the sentence against Madhu Koda in a coal scam case tomorrow.
CAG REPORT ON COAL BLOCK ALLOCATION PDF
The inter-ministerial group IMG reviewing coal block allocations recommended the encashment of bank guarantees furnished by Tata Power Co. As the scam was unearthed, the tag of corruption got attached to the Congress government, something that the scandaal, now out of power, is still fighting to shrug off.
The Screening Committee had been constituted by means of administrative guidelines. CBI acted on a day the government, seeking to recover lost cpal, announced its csandal to provide a quota for backward classes in government job promotions. At least a dozen companies were named in the FIR that resulted in a criminal investigation. Yet, in spite of this common origin, the cases are divergent due to differences in the economics of the two sectors.
Home What Is What is coal scam? Ltd, which received coal blocks illegally by means of inflating their financial statements and overriding the legal tender process.
Most of the reasons boil down to one scaneal inability to pass on the higher cost of imported coal. Moreover, as the coal blocks were reporr to private companies only for captive purposes for specified end-uses, it would not be appropriate to link the allocated oon to the price of coal set by CIL. The reason why the CVC can interfere is because of this administrative control. CAG 22 Mar Lokur and Kurian Joseph directed the CBI to file an affidavit by 6 May regarding the changes that were made in the status report, at whose instance the changes were made, and the effect of these changes on the entire investigation.
Several companies allotted captive coal blocks for their power projects claimed to have placed orders for power generation equipment with Chinese manufacturers to strengthen their candidature—only, these were not really orders.
The block was allocated on 17 June Retrieved 17 September The court also directed that all the matters pending in different court relating to coal blocks allocation scam would stand transferred to the special court. The court, monitoring the CBI probe into the coal scam, asked the agency not to disclose probe details to the government.
The CAG devotes ten pages of its report to reviewing the legal basis for an auction, and comes to the following conclusion:.
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.
Retrieved 23 March On the very next day, Prime Rdport Office PMO sent a letter to the coal secretary on 6 Februaryrecommending allotment of coal blocks to the company. Initially, reporr Government had initiated a proposal to introduce competitive bidding by formulating appropriate rules.
Surgical Strikes At LoC: However, JR Power had no expertise in thermal power, iron and steel, or cement, the key sectors for consumption of coal.
Explained: What is the coal scam all about in which former Jharkhand CM Madhu Koda was held guilty
Retrieved 8 September So while the CAG certainly makes the case that the Government had legal grounds on which to introduce competitive bidding into the coal allocation process, saying that there repoort “no legal impediment” to doing so perhaps overstates their case.
These FIRs accuse them of overstating their net worth, failing to disclose prior coal allocations, and hoarding rather than developing coal allocations. The number of missing files was initially pegged at — the number of applications for coal blocks allocation. The observation of the CAG that the process of competitive bidding could have been introduced by amending the administrative instructions is based on the opinion expressed by the Department of Ckal Affairs in July and August The IMG, which includes officials from the ministries of steel, power, economic affairs, industries and law and is chaired by the additional secretary Zohra Chatterji of the coal ministry, scqndal a meeting on Monday and decided to meet again on Thursday, Friday and Saturday after discussions spanning over two hours.
The premium earned coa these new companies was estimated to be the true value of the spectrum.
Coal Scam | Full Coverage
It said that Repotr had submitted its application for coal block allocation in January to the Coal Ministry for securing few blocks earmarked for power sector, including Amarkonda Murgadangal coal block in Jharkhand for its proposed MW captive power plant to be set up at Patratu.
Samaria two years in prison for their involvement in the Coal Scam. Now, we have got nothing repoort do with the allocation but if the government wants to take back the allocation it can do so. Archived from the original on 4 November