'No Iota Of Evidence' : Delhi Court Acquits All In Bander Coal Block Case; Ex-Coal Secretary Honourably Acquitted

A Special Court in Delhi has acquitted former Coal Secretary H.C. Gupta, former Rajya Sabha Member of Parliament Vijay Darda, businessman Manoj Kumar Jayaswal, Devendra Darda and company AMR Iron & Steel Pvt. Ltd. in the Bander coal block allocation case, holding that there was no iota of evidence to establish criminality, undue influence or dishonest intention in the allocation process.

The judgment was delivered on March 27, 2026 by Special Judge Sunena Sharma at the Rouse Avenue Court in the case investigated by the Central Bureau of Investigation (CBI) concerning alleged irregularities in coal block allocations made between 2006 and 2009. The case related to the allocation of the Bander coal block in Maharashtra to AMR Iron & Steel Pvt. Ltd. for setting up a steel plant.

CBI miserably failed 

The Court, after examining the evidence on record, found that the prosecution had "miserably" failed to establish any material showing that the accused persons had exercised undue influence or secured the coal block through dishonest means. It specifically recorded that there was no evidence whatsoever to indicate that Vijay Darda had attempted to influence any member of the Screening Committee or that his communications with government authorities played any role in the allocation decision. The Court observed that the letters written by him were routine representations made in his capacity as a Member of Parliament and were not considered in the decision-making process.

"The prosecution has miserably failed to prove the charge relating to illegal gratification arising out of the aforesaid transactions...material is completely lacking to demonstrate that the said transactions were undertaken pursuant to any prior demand, agreement or purpose of influencing the allocation of coal block. Thus, the charge under Section 9 of PC Act against A-2 and under Section 120-B IPC against all the accused persons qua the alleged illegal gratification through the aforesaid transactions has remained unsubstantiated and liable to fail."

The Court further noted that the "the charge of conspiracy has miserably failed even on merits."

Former Coal Secretary H.C. Gupta Granted Honourable Acquittal

In relation to former Coal Secretary H.C. Gupta, the Court granted an honourable acquittal, holding that he could not be held criminally liable for a collective decision taken by a multi-member Screening Committee. The Court noted that the Committee functioned as a collective body comprising representatives from various ministries and departments and that the Chairman did not possess any veto power to alter its decisions. It further observed that by the time the final allocation letter was issued in favour of the company, Gupta had already retired from service, and therefore the statutory requirement for establishing criminal misconduct under the Prevention of Corruption Act was not satisfied.

The Court observed :

"Before parting with this judgment, this court owes a duty to mention that Sh. H.C.Gupta (A-6), Ex-Secretary, Ministry of Coal, who had been summoned by the court on a closure report filed by CBI qua him, has been honourably acquitted for lack of any evidence for the alleged charges framed against him."

The prosecution had alleged that the company and its directors made false representations regarding prior allocation of coal blocks, financial strength and project preparedness in order to secure the coal block. However, the Court held that even assuming certain statements were incorrect, criminal liability for cheating could arise only if dishonest intention at the time of making the representation was proved. The Court found that the prosecution had failed to demonstrate such intention or to establish that any alleged misrepresentation had induced the authorities to allocate the coal block.

The Court also rejected the allegation that a sum of ₹24.60 crore was paid as quid pro quo for securing the allocation. It held that there was no reliable evidence establishing any nexus between the financial transactions and the allocation decision, and therefore the charge of corruption could not be sustained.

Significantly, the Court noted that the coal block was never operationalised. The company was unable to set up the proposed end-use plant or obtain the necessary clearances, no mining lease was executed, and no coal was ever extracted from the block, which was eventually de-allocated in 2014.

Holding that the prosecution had failed to prove the essential ingredients of cheating, conspiracy or criminal misconduct beyond reasonable doubt, the Special Court acquitted all the accused persons in the case after a full-fledged trial.

Case : Central Bureau Of Investigation v. Manoj Kumar Jayaswal and others

Click here to read the judgment