Jaiswal rules out immediate de-allocation of coal blocks

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Refusing to respond to the opposition's demand for cancellation of mining licences to end the ongoing parliamentary impasse, Union Coal Minister Sriprakash Jaiswal has said action would be taken on currently allocated coal blocks on the basis of deliberations of an inter-ministerial group (IMG).

Jaiswal told media here that a hasty cancellation of mining licenses would send affected parties to court to obtain relief, further complicating the issue, alleging that this seemed to be the Bharatiya Janata Party's objective.

"Without the discussions of the inter-ministerial group (IMG), without a case-to-case examination, if the coal blocks are de-allocated or changed, it becomes very easy for the affected parties to obtain relief from courts. It seems to me that this is the BJP's strategy, otherwise no one with a shred of serious thought can make a demand for complete de-allocation," he said.

Jaiswal further said that the allocations to 26 companies, out of a total of 58 who were allotted the blocks between 1993 to 2009, had been cancelled, with the rest being deliberated upon by the IMG.

"Out of those who got coal blocks allotted between 1993 and 2009, 58 companies were issued notices. Their replies have come, and the IMG is deliberating upon them," he said.

However, the Central Bureau of Investigation ( CBI ) had registered five separate cases against certain private companies, their directors and unknown public servants on September 3.

The cases have been registered in connection with the allegations related to getting coal blocks allocated on the basis of misrepresentations and false claims in the applications, presentations and connivance/lack of due diligence on part of public servants.

Promoters of some of these companies have allegedly sold their stakes in an irregular manner after allocation of coal blocks.

Searches are being conducted on Tuesday at 30 locations in 11 cities including Nagpur, Kolkata, Bhilai, Yavatmal, Raipur, Dhanbad, Ranchi, Hyderabad, Mumbai, Delhi (NCR), among others.

A preliminary enquiry to examine the irregularities, if any, in the allocation of coal blocks during the period 2006-09 was registered on a reference from CVC, in June 2012.