Coalscam: Ex-Coal Secy HC Gupta, 2 others summoned as accused

New Delhi, July 6

Former Coal Secretary HC Gupta and two others were summoned as accused in a coal scam case by a special court on Monday after the court observed that evidence prima facie showed that it was the bureaucrat who facilitated allocation of a Madhya Pradesh coal block to Pushp Steels and Mining Pvt Ltd resulting in loss to the government.

The court has also called Pushp Steels and Mining Pvt Ltd (PSMPL) and its director Atul Jain to appear before it as accused on August 3. Jain has been charged with offences under section 120B (criminal conspiracy) read with section 409 (criminal breach of trust by public servant) of the IPC and under provisions of the Prevention of Corruption Act.

Special CBI Judge Bharat Parashar said it appeared that Gupta, who was also the Chairman of Screening Committee, through what he called acts of omission and commission, had facilitated the discriminatory allocation of Brahmapuri coal block in Madhya Pradesh to PSMPL, resulting in losses for other applicants as well as the central government.

"Clearly, HC Gupta in his capacity as Secretary (Coal) was heading the Screening Committee and was thus entrusted with dominion over various coal blocks to the extent that recommendation for allocation of various coal blocks to different applicant companies was to be made by the Committee headed by him and as constituted under his Ministry," the court said in its 15- page order.

The court summoned Gupta for prima facie substantive offence under section 409 of the IPC, for which, if he is found guilty, he could be imprisoned for life under the anti-graft law.

The case pertains to irregularities in allocating Brahmapuri coal block to PSMPL.

The Central Bureau of Investigation, in its charge sheet, claimed that a screening committee that Gupta headed had recommended PSMPL for the coal block but neither the state government nor the administrative ministry had seconded this recommendation.

However, the Steel Ministry later found the firm eligible.

The agency claimed that minutes of screening committee were silent on the committee’s criteria for the allocation and what tipped the scales in PSMPL’s favour.

It said the committee, on September 22, 2006, in a meeting presided by Gupta, had selected PSMPL over others, such as M/s Satna Power Company Ltd, which the Madhya Pradesh government had recommended for the coal block.

It also claimed that Gupta had "submitted wrong facts which were not even mentioned in the application submitted by PSMPL" when then Principal Secretary to Prime Minister Manmohan Singh, who was also in charge of the Coal Ministry, discussed reasons for recommending the firm.

"Thus, it was found that Gupta stated wrong facts to Principal Secretary to Prime Minister for justifying the recommendation of the Screening Committee qua M/s PSMPL," the agency had said, adding that the recommendation in favour of PSMPL was made in complete violation of laid-down guidelines for deciding the inter-se priority of applicant companies.

The agency also claimed that while Gupta had stated that PSMPL has been allotted iron ore mine, no such allocation had been made. It claimed that not only was the total net worth of its group companies only Rs 3.01 crore — insignificant when compared to the other applicants — but it also found that the company had no experience in manufacturing steel. The agency claimed the firm wanted the coal block for a sponge iron project at Durg district in Chhattisgarh.

It also referred to the note sent by then Minister of State for Coal Dasari Narayan Rao, which said since Steel Ministry had found PSMPL ineligible, the committee should consider the next applicant in the list. — PTI