Kumar Mangalam Birla

Manmohan Singh has been under Opposition attack in coal blocks allocation scam especially after the CBI named industrialist Kumar Mangalam Birla and former coal secretary PC Parakh in its 14th FIR in relation to the probe into allocation of a coal block to Hindalco.

India's business leaders now stand becalmed by an economic slowdown and beset by anti-corruption investigations. Their frustration with India's lacklustre government is clear. Many wait quietly for the saviour they hope will arrive after next year's elections: opposition leader Narendra Modi.

The report is expected to inform the apex court about 14th FIR which was filed recently against industrialist Kumar Mangalam Birla, his company Hindalco and former coal secretary PC Parakh.

CBI sources said the move came after filing of status report before the Supreme Court where the agency has informed the apex court about the latest case registered by it against Aditya Birla Group Chairman Kumar Mangalam Birla and former Coal Secretary P C Parakh.

The lawyer, who filed an application in the wake of statement by Parakh that the Prime Minister knew of the coal blocks being allocated to companies like Hindalco and he too should be named as a "conspirator" and made an "accused", submitted that Singh must make clear his position.

Patnaik, who had in August 2005 recommended to the Prime Minister Manmohan Singh allocation of Talabira II mine to Hindalco, had on June 22, 2002 written to the then Coal and Mines Minister Ravi Shankar Prasad for allotment of the Utkal B-1 mine to JSPL by cancelling an earlier allotment of the coal block to Talcher Mining.

Since it is the government's right to decide how a policy has to be implemented, it is now highly unlikely that the CBI can proceed against Birla when the PM himself says the case was decided on "merits".

Income Tax department today seized Rs 25 crore that was recovered by CBI here during searches at the office of Hindalco Industries, which has been booked by the agency for alleged corruption in coal block allocations.

If it is a case of conspiracy, all the conspirators should be taken into account. I hope there is no conspiracy!, says EAS Sarma, former Coal Secretary.

If the CBI is going to go after every businessman, every politician, every bureaucrat, never mind the quality of the evidence against them, it will end up creating such a mess that no one will want it solved.

The former coal secretary PC Parakh today said, “Prime Minister could have overruled my decision; everyone was equally responsible in the matter”, adding that he was not sure why the CBI had named him.

In a veiled criticism of CBI, he said authorities should not "play to the gallery and create an environment of sensation and shock".

CBI said that it had sufficient evidence to prove Parakh overturned the screening committee's decision to favour Aditya Birla Group Chairman Kumar Mangalam Birla.

The panel will make its recommendations to the Governor and Deputy Governors, who will make the final proposals to the committee of the RBI central board.

The Reserve Bank is likely to complete initial scrutiny of 26 applications for new bank licences in a month, a senior RBI official said.

Soon after Raghuram Rajan took charge as the 23rd Governor of RBI, he had said that an external committee would be headed by former central bank Governor Bimal Jalan to screen the 26 applications for bank licences.

Jaypee group sold its Gujarat cement unit to Ultratech Cement for Rs 3,800 crore. As part of the deal, UltraTech will pay Rs 150 crore in stock, Rs 1,650 crore in cash and assume debt worth Rs 2,000 crore.

The company's consolidated capex spend was close to USD 2.6 billion (Rs 14,000 crore). The 2012-13 fiscal was the third consecutive year of the highest ever capex spend.

RBI, the sources said, is currently screening the prima facie eligibility of the applicants including 'fit and proper' criteria and other relevant parameters. After the screening of the applications by RBI the names will be referred to the high level panel for scrutiny.

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