From the FIR: Parakh & Co denied coal block to Hindalco,then did U-turn

“Enquiry… revealed that while the recommendations of screening committee were being approved by the competent authority,it received letters dated 07.05.2005 and 17.06.2005 from Kumar Mangalam Birla of M/s Hindalco Industries Ltd,requesting for allocation of Talabira II coal block,which were forwarded to the Ministry of Coal,” the CBI has said in its FIR.

According to the CBI,“Birla met Parakh,the then Secretary (Coal),during July 2005 and requested for the allocation of Talabira II coal block to Hindalco… Pursuant to these letters and the personal meeting between Parakh and Birla,Parakh,by abusing his official position as a public servant recommended the allocation of Talabira II along with Talabira III coal block to Hindalco,along with other two companies without any valid basis or change in circumstances and with the sole intention to show undue favours to Hindalco.”

Parakh,the FIR says,“ignored the considered deliberations and recommendations of the 25th screening committee of which he was the chairman. In his recommendation,the Secretary (Coal) proposed the formation of a joint venture company between Mahanadi Coalfields Ltd,Neyveli Lignite Corporation Ltd and Hindalco Industries Ltd with equity share holding of 70%,15% and 15% respectively,which was approved by the competent authority…

“Prior to the aforesaid approval,the arrangement was discussed by Secretary (Coal) with M/s Hindalco and only after the latter’s agreement with the proposed arrangement,the file was further processed. This resulted in the satisfaction level of 81% in respect of M/s Hindalco as against 29% for M/s NLC. Due to this arrangement,the proposed power project of M/s NLC which was approved by the Ministry of Power could not take off as planned,” the FIR says.

“Thus,M/s Hindalco Industries Ltd (a private company) was favoured by Shri P C Parakh and other unknown public servants in criminal conspiracy with each other at the cost of M/s Neyveli Lignite Corporation Ltd,a public sector undertaking.

“The aforementioned information prima facie discloses commission of offences of criminal conspiracy and criminal misconduct by a public servant. Therefore,a regular case may be registered against Shri P C Parakh,the then Secretary,Ministry of Coal,Shri Kumar Mangalam Birla,M/s Hindalco Industries Ltd,and other unknown persons/officials under section 120B IPC r/w 13(2) r/w 13(1)(d) of PC Act,1988,for thorough investigation,” the FIR says.

Section 13 of the Prevention of Corruption Act deals with “Criminal misconduct by a public servant”. 13(1)(d) lays down the conditions under which a public servant is deemed to have committed criminal misconduct; 13(2) prescribes a punishment of between one and seven years in jail for the offence.

The agency has so far been unable to either establish a quid pro quo or a money trail. Investigations were under way,it has said.

Asked for a reaction,Parakh told The Indian Express,“This case is a sham. I am not disputing the facts of the meeting. The representation was made and we considered it because there was merit in it. If CBI thinks that there was a conspiracy then the prime minister should also be included in it. When asked whether he was coerced into making the decision,Parakh said,“The proposal was cleared by PMO.”