CBI mulls option of closing Coalgate case against Birla Statement By PMO Leaves Agency In A Bind

New Delhi: Prime Minister Manmohan Singh's strong defence of the allocation of the Talabira II coal block to Hindalco has created uncertainty about the fate of the CBI's investigation into the matter, with many feeling that it may turn out to be still-born. 

    Sources in the agency acknowledged that with the PM owning up the controversial allocation, they were in abind. "We can't close the investigation straightaway and, having registered an FIR for alleged misconduct, will have to talk to all people concerned. But we are open to the idea of closing the investigation," said a senior source in the agency when asked about the fallout of the PMO's intervention in the high-profile probe. 
    The CBI had never ruled out the possibility of the investigation being wound up, with senior officials emphasizing at the outset that "FIR is just a primary action in any case" and that "many probes initiated by the agency are shut down". But while closure of investigation was talked about as a technical possibility, it is now being seen as a distinct prospect, with sources in the CBI appearing reconciled to aborting the probe after seeking legal opinion. 
    A senior CBI officer explained, "According to our enquiry, the joint venture between PSUs and Hindalco was designed to favour the private company, and it involved violation of rules. However, we will take a thorough legal opinion on whether there was criminality in this matter and if there is nothing against Kumar Mangalam Birla, Hindalco Industries Ltd and P C Parakh, there is a possibility that the case will be closed." 
    In what marked a repudiation of the allegation against Birla and former coal secretary Parakh, the PMO had said on Saturday, "The PM is satisfied the final decision in this regard was entirely appropriate and based on merits of the case placed before him." 
'FIR JUST A PRIMARY ACTION' 
    Senior CBI officers say FIR is just a primary action and 
many cases end in closures 
    "We will take a thorough legal opinion... if there is nothing against K M Birla, Hindalco and P C Parakh, there is a possibility the case would be closed," 
says an officer On Oct 19, PMO defended allocation of coal block to Hindalco, saying decision was "appropriate and merit-based" 
    CBI has already stated that 
"it is not probing quid pro quo against Parakh" in the case but "misuse of official position" 
    Agency is expected to file status report to SC on Coalgate this week, probably by Oct 22 'PMO hint clear: Get off their backs' 
    The CBI had accused Birla and Parakh of conspiring to allocate Talabira II coal block in Odisha to Hindalco, reversing the decision of the screening committee under the coal ministry to award the block to public sector entities Neyveli Lignite Corporation (NLC) and Mahanadi Coalfields Limited. In the FIR, the agency also alleged that the change was to the disadvantage of NLC which had planned to use the Talabira deposits for a power plant it proposed to set up. 
    The charge was rejected by the PMO which said the decision was changed at the instance of Odisha CM Naveen Patnaik who had cited the needs of his state to demand a reconsideration. It dismissed the charge that NLC was adversely impacted by saying that the final decision was arrived at after factoring in the interests of the PSU. 
    In contrast to the CBI's charge about there being a conspiracy between Birla and Parakh to favour Hindalco, the PMO painted the decision as legitimate and influenced by the spirit of federalism and the need to generate jobs in Odisha. In fact, the PMO went on to say that it had relaxed the guidelines to enhance Hindalco's share from the block: a fact that even the CBI had not mentioned in its FIR to substantiate the charge of criminal conspiracy between the aluminium major and the coal ministry. 
    Although the PMO emphasized that it did not wish to impede the CBI's investigation, sources in the agency said the public rejection of their FIR translated into a clear hint to get off the back of Birla and Parakh. 
Explain all coal block allocations: BJP to PM 
New Delhi: On the day PM Manmohan Singh left on a tour of Russia and China, the BJP asked why he had explained only one coal block allocation when even the SC has held that all allocations were not done in a free and fair manner. "For the first time since the coal block allocation scam came up, the PM has explained about one allocation. But there have been more than 150 coal block allocations, so will he be able to explain all of them," party spokesperson Prakash Javadekar asked on Sunday. TNN

Kumar Mangalam Birla