Delhi Court Discharges Former Coal Secretary, Others In Coal Block Allocation Case; Says Their Acts Weren't Against Public Interest

A Delhi Court has discharged former coal secretary and various other individuals in the case concerning allocation of the Fatehpur East Coal Block.

Special Judge Dheeraj Mor of Rouse Avenue Courts discharged Harish Chandra Gupta, then Secretary of Union Ministry of Coal, as well as four other accused.

Upon preliminary inquiry by CBI, the case was registered on the allegations of criminal conspiracy, cheating and corruption involving M/s. R.K.M. Powergen Private Limited Company (RKMPPL), its directors and officials from the Union Ministry of Coal.

As per the FIR, the Screening Committee and Ministry of Coal officials bypassed eligibility norms and recommended RKMPPL and others for allocation.

It further alleged that RKMPPL issued shares at a high premium favoring its Indian promoter after the coal block was allocated. The probe revealed forged consent letters for land acquisition were submitted by RKMPPL.

The Detailed Project Report (DPR) attached with RKMPPL's application was found to be inconsistent and falsely represented the power project capacity and preparation status.

Despite initial closure by CBI stating no substantive allegations, further investigation led to filing of chargesheet against RKMPPL, its directors, and Ministry officials, citing cheating, forgery and criminal misconduct.

In a detailed order running into 102 pages, the judge discharged Gupta, Kuljeet Singh Kropha- then Joint Secretary of Coal Ministry, RKMPPL, as well as the company's Director and Managing Director.

The Court observed that the recommendation ofh Screening Committee for allocation of Fatehpur East Coal Block to the most meritorious and deserving compcompany-PPL, was act in public interest.

“Therefore, there is not even an iota of material available on record to suggest that the act of accused public servants was without public interest. Hence, the essential ingredient of offence punishable under Section 13(1)(d)(iii) PC Act is conspicuously missing,” the Court said.

It added that there was no reason to prima facie presume that RKMPPL and its Directors ever made any false claims qua land in any of their communications, including application forms and feedback form with Government Departments including Ministry of Coal, Ministry of Power and State Government of Chhattisgarh for seeking allocation of Fatehpur East Coal Block.

The judge further said that there was no reason to presume that the accused company made any false claim qua detailed project report to the Ministry of Coal or any other concerned Ministry or the State Government.

“….the allegations of the prosecution that accused no.1 company gave misleading information or claimed false facts qua the aspect of finance are unfounded. Rather, the said claim is established to be genuine and correct which has been buttressed by the afore discussed subsequent conduct of accused no.1 company,” the Court held.

The accused public servants were represented by Advocate Rahul Tyagi, assisted by Advocate Mathew M Phillip.

The accused company was represented by Senior Advocate B Kumar.

Case title: CBI v/s M/s R.K.M. Powergen Pvt. Ltd and others

Click here to read order