The Central Bureau of Investigation's decision to formally name industrialist Kumar Mangalam Birla in the coal scam case has caused consternation among several Union ministers. Commerce and Industry Minister Anand Sharma described the development as 'unfortunate' while Corporate Affairs Minister Sachin Pilot said, "While no one is above the law and wrongdoers have to be brought to justice, we must ensure that such actions are based on hard facts and do not create an atmosphere of fear and uncertainty."



In a veiled criticism of the CBI, Sharma said the authorities should not "play to the gallery and create an environment of sensation and shock".



"So, the larger question which comes up is that whether we have an environment which is conducive to decision making and also which gives confidence to the investors and to the corporate world," Sharma said.



Former coal secretary PC Parakh, facing a CBI probe into alleged irregularities in coal block allocation, on Wednesday triggered a storm by saying that PM Manmohan Singh should also be counted amongst the conspirators and he too should be involved in the investigation.



Former Coal Secretary PC Parakh. Former Coal Secretary PC Parakh.



His point was that this was a fair decision and there was no conspiracy or corruption in it. However, if it was being viewed as a conspiracy then everyone involved should be treated equally as a conspirator. "If the CBI feels that there is a conspiracy then I, Mr Birla and the Prime Minister are the three crucial points - Mr Birla's representation, my processing of it and the Prime Minister's final decision...investigate everybody and not just me and Mr Birla."



"There is absolutely nothing wrong with the decision. It was a very fair and correct decision that we took. I don't know why CBI thought that there is a conspiracy," Parakh said.



"If CBI behaves like this, then people will find it difficult to take decisions, especially young officers. It should have a relook at the entire case and scrap it," the former coal secretary said. The former bureaucrat's remarks came a day after CBI lodged a case against him and Birla for alleged irregularities and criminal conspiracy in the allocation of two coal blocks.

PC Parakh: A Spotless Record and Some Coal Dust



Why are Parakh and Hindalco under the scanner?



Accusing him of abusing his official position, CBI has said Parakh reversed his decision to reject coal block allocation to Hindalco, of which Birla is the chairman, within months "without any valid basis or change in circumstances" and to show "undue favours".



The agency has said that during the 25th Screening Committee meeting, chaired by Parakh, applications of Hindalco and Indal Industries were rejected for mining in Talabira II and III "citing valid reasons". On the recommendations of the Screening Committee, the coal blocks were allocated to Mahanadi Coalfields and Neyveli Lignite Corporation, both public sector undertakings.



These recommendations were placed before the "Competent Authority" which agreed with Parakh, who later issued the letter of allocation to the PSUs on June 16 and July 15 of 2005. Within days, a "personal meeting" took place between Parakh and Birla in which the industrialist requested for the allocation of Talabira II coal block, CBI said.



The sources claimed that alleged favours shown to Birla in awarding Talabira II and III resulted in notional loss to the exchequer which are enough to book Parakh and Birla for criminal conspiracy.



In an exclusive interview, the former coal secretary also said, "Yes, Mr Birla met me and made his representation which I processed."



"Mr Birla gave me his representation. He said that the screening committee's decision (to deny Hindalco a coal block) was not fair and should be reconsidered."



Should Birla have thus intervened? Parakh sees nothing wrong with the meeting. "A meeting with anybody who is aggrieved because of a decision does not become a conspiracy," he said. "Even if it is a wrong decision it does not become a crime." Accusing him of abusing his official position, CBI has said Parakh reversed his decision to reject coal block allocation to Hindalco, of which Birla is the chairman, within months "without any valid basis or change in circumstances" and to show "undue favours".The agency has said that during the 25th Screening Committee meeting, chaired by Parakh, applications of Hindalco and Indal Industries were rejected for mining in Talabira II and III "citing valid reasons". On the recommendations of the Screening Committee, the coal blocks were allocated to Mahanadi Coalfields and Neyveli Lignite Corporation, both public sector undertakings.These recommendations were placed before the "Competent Authority" which agreed with Parakh, who later issued the letter of allocation to the PSUs on June 16 and July 15 of 2005. Within days, a "personal meeting" took place between Parakh and Birla in which the industrialist requested for the allocation of Talabira II coal block, CBI said.The sources claimed that alleged favours shown to Birla in awarding Talabira II and III resulted in notional loss to the exchequer which are enough to book Parakh and Birla for criminal conspiracy.In an exclusive interview, the former coal secretary also said, "Yes, Mr Birla met me and made his representation which I processed.""Mr Birla gave me his representation. He said that the screening committee's decision (to deny Hindalco a coal block) was not fair and should be reconsidered."Should Birla have thus intervened? Parakh sees nothing wrong with the meeting. "A meeting with anybody who is aggrieved because of a decision does not become a conspiracy," he said. "Even if it is a wrong decision it does not become a crime." Exclusive: There was no corruption, Neyveli Lignite and Hindalco were equally entitled to the coal block, says PC Parakh

With PM Manmohan Singh facing fresh attack in coal block allocations, the Congress and the government appeared to hit out at the former coal secretary for his comments against him as it sought to take refuge in the fact that the matter is subjudice.Congress leader Digvijaya Singh said that Parakh is a free man and instead of making statements he should say what he wants in front of the CBI. Responding to remarks by Parakh that the Prime Minister must be counted as a "conspirator" if there was a scam in the coal block allocations, Information and Broadcasting Minister Manish Tewari said "unwarranted and uncalled for" comments should be avoided on the matter.Latching on to comments by Parakh, BJP and Left parties targeted the Prime Minister, saying he cannot escape responsibility in the controversial allocations as he held the charge of the Coal Ministry at that time.BJP came out all guns blazing following Parakh's remarks, saying "Accountability of the Prime Minister and the PMO is equally important. Therefore, we demand a fair investigation."Describing Parakh as an upright IAS officer, BJP leader Yashwant Sinha said, "The time has come for Parakh to speak up. He has spoken a little, he should come out clean now, make public statements of how files were disposed of at that time (when the PM was in charge of the Coal Ministry)."Today a surprising development has taken place where in a bizarre instance an FIR has been lodged against the officer who suggested that the auction route should be adopted in coal block allocations and even prepared a Cabinet note on it," BJP spokesperson Prakash Javadekar said.

(With PTI inputs)

