SC to mull scrapping all coal blocks awarded in 2006-09

Moneycontrol Bureau

The Supreme Court (SC) is likely to consider the scrapping of all coal blocks awarded during 2006-09. According to CNBC-TV18 reports, the Central Bureau of Investigation (CBI) has told the SC that no proper procedure was followed in the allotment of coal blocks by the central government.

The agency has claimed that prima facie it looks like the coal block allocation was done on arbitrary basis and no verification of credentials of the companies was carried out. 

The CBI's claim is in contradiction to the government's stand, which argued that every procedure in law was followed and that allocation of coal blocks were vetted by the screening committee. The Centre has objected to the CBI finding, saying that the agency is not the final word on it.

However, earlier in the year the SC had made it clear to the Centre that it had no power to allocate coal blocks to private companies and sought legal explanation from Attorney-General GE Vahanvati for making the allotments.

The apex court has asked the Centre to explain why small group of companies were "picked and chosen" out of large number of companies who applied for coal block allocation.

It has also asked the CBI director to file affidavit for giving assurance that the probe of the scam, dubbed now famously as "Coalgate", report is not shared with "political executive".  

The SC is seeking further CBI report on probe on coal blocks by April 30 in its next hearing on April 30.

Also Read: CBI registers fresh case in coal scam