The coal scam brought shame to our country as the black money involved in this scam swallowed all the other previous scams. It is referred to as ‘Coalgate’ in the press media.
Do you want to know what the ‘Coalgate’ scam is all about? Here are important things you need to know about the coal allocation scam.
Have a look..
What is the Coal scam?
The scam came into the light when CAG of India found that the government exchequer had to bear a loss of whopping 1,86,000 crore rupees because the Government of India illegally and irregularly allocated our nation’s coal deposits to private and state-run entities.
Our then government, instead of auctioning the coal blocks in the public , allocated them at lower price.
This scam is the allocation of coal blocks to corporates of public centre entities, companies and the private sector during the UPA rule. Proper procedure was not followed and the allocations were believed to be arbitrary.
What did CAG reveal?
CAG accused the then government for allocating 194 coal blocks to public and private enterprises between 2004 and 2009.
According to its report, about 25 big industrial company allegedly made major gains due to the lack of bidding between 2004 and 2006. Some private players got more coal blocks than needed and sold coal meant for internal use in the open market.
CAG report showed that improper allocation was done by the then government. Instead of competitive bidding government chose to take another route.
What was the estimated loss?
The CAG first estimated a loss of Rs. 10.6 lakh crore but after the final report was tabled in the parliament, the losses were shown to be Rs. 1.86 lakh crore.
Who all in the net?
Around a dozen companies were named in the FIR.
Industrialists like Naveen Jindal, former coal secretary PC Parakh and Kumar Mangalam Birla’s names were also there in FIRs.
In July 2014, Supreme Court constituted a special court to undertake all cases related to the scam. The CBI after investigation took back its cases against Kumar Mangalam Birla and PC Parakh.
No doubt, Coal scam was one of the largest scams that tarnished the image of the then government.