CBI reverses stand, says enough evidence against Birla, Parakh in coal scam

The Central Bureau of Investigation (CBI) on Monday informed a special court that there is 'prima facie enough material on record' to prosecute Kumar Mangalam Birla, chairman of the Aditya Birla Group, and former Coal Secretary P.C. Parakh in connection with the allocation of coal blocks to Hindalco, the group's metals flagship company.

This marks a reversal of the investigating agency's earlier stance when it had sought closure of the case. The special judge, Bharat Parashar, recorded the submissions of the Special Public Prosecutor, who stated that from the overall facts and circumstances, there is prima facie enough material to take cognisance of various offences under the Prevention of Corruption Act and the Indian Penal Code against private parties and some public servants involved in the allocation process.

The judge noted that a compilation of relevant documents has been filed for ready reference. The CBI had last year lodged an FIR against Parakh, Birla, and others, alleging that Parakh had reversed his earlier decision not to allocate coal blocks to Hindalco without any valid basis, showing undue favour to the company.

Earlier, in September, the special judge had pulled up the CBI for not filing the original minutes of the Screening Committee that considered Hindalco's application. The agency subsequently filed a revised investigation report with all relevant documents. The court has now fixed November 25 as the date for consideration of the CBI's investigation report for further proceedings.