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Coal block allocation: CBI to quiz coal secretary P C Parakh

Almost two months after filing an FIR, the Central Bureau of Investigation has decided to call former coal secretary P C Parakh for questioning.

Agency sources said Parakh would be questioned in New Delhi this month. The allocation of Talabira II coal block to Aditya Birla group's Hindalco has been defended by the Prime Ministers's Office after which the CBI is investigating the process of allocations done under joint venture.

PMO had defended the allocation saying the final decision was "appropriate and was based on merits".

CBI had named Parakh as accused along with Kumar Mangalam Birla and Hindalco Industries Ltd in the case. In its FIR, CBI alleged that Parakh had favoured Birla's company by overturning his own decision. The agency had alleged that Birla's company Indal and Hindalco Industries Ltd had applied for allocation of Talabira II coal block along with Neyveli Lignite Corporation (NLC) and other private companies and had presented their case before the 25th screening committee.

"While rejecting Hindalco's name at the time of allocation, Parakh processed and examined the applications and recommended the allocation of Talabira II to NLC for being mined along with Talabira III in conjunction with Mahanadi Coalfields Ltd. Parakh directed to issue allocation of Talabira II and III to NLC and Mahanadi on June 16, 2005 through his letter," said CBI.

CBI said Birla wrote two letters to the competent authority while the recommendations of the screening committee were still being approved, and he requested allocation of Talabira II coal block to his company. The screening committee forwarded these letters to the coal ministry.

CBI had alleged that Parakh ignored the deliberations and recommendations of the 25th screening committee of which he was the chairman. "In his recommendation, the secretary coal (Parakh) proposed the formation of a joint venture company between Mahanadi Coalfields, NLC and Hindalco with equity share holding of 70%, 15% and 15% respectively, which was approved by the competent authority. Accordingly, allocation letter was issued to the aforesaid three parties jointly on November 10, 2005," said CBI.

Source: The Times of India