CBI drops coal scam case against Kumar Mangalam Birla
NEW DELHI (Reuters) - The Central Bureau of Investigation (CBI) has closed a coal scam case against billionaire Kumar Mangalam Birla and a former top bureaucrat that emerged in 2012 after an auditor's report on revenue loss to the exchequer from allocations of coal blocks.
The CBI filed the case against Birla and former Coal Secretary P.C. Parakh last year in relation to a block allocated in 2005 to Hindalco Industries (HALC.NS), part of the $40 billion Aditya Birla Group led by Kumar Mangalam Birla.
"The evidence collected during investigation did not substantiate the allegations levelled against the persons named in the FIR (first information report filed in the case)," the CBI said in a statement late on Friday.
India's federal auditor had alleged that the government's allocation of coal blocks may have cost the exchequer revenues of about $33 billion, although industry watchers and the previous government have cast doubts on the figure. Indian media has dubbed the scandal "coalgate".
Though the CBI has dropped the name of Birla, the Supreme Court of India this week ruled that allocations of coal blocks since 1993 were illegal. That would include blocks awarded to firms including Hindalco and Jindal Steel and Power Ltd (JNSP.NS).
The court will hold a further hearing on Monday, after which it will decide whether to cancel the allocations or impose some sort of penalty.
(Reporting by Krishna N Das; Editing by Simon Cameron-Moore)
- Tweet this
- Share this
- Digg this
- Oil falls below $86 as oversupply, global economy worries weigh
- Indiana police charge suspect who may have killed for decades
- Total CEO de Margerie killed in Moscow business jet accident
- California woman gets stuck in chimney trying to sneak into home
- UPDATE 2-Texas investor Sam Wyly files for bankruptcy after losing SEC fraud case
India promised on Monday to open up the coal industry to private players and moved closer to selling a stake in a state-run oil company, as Prime Minister Narendra Modi picked up the pace on economic reform days after relaxing fuel price controls. Full Article
Total CEO de Margerie killed in Moscow plane accident - airport spokeswoman. Full Article