A special CBI court on Wednesday stunned former prime minister Manmohan Singh and his Congress colleagues by summoning him as an accused in a case of alleged illegal allocation of a coal block to Kumar Mangalam Birla's Hindalco at the cost of public sector Neyveli Lignite Corporation.
Along with Singh, special judge Bharat Parashar also summoned Birla and two senior officials of Hindalco, Shubhendu Amitabh and D Bhattacharya, and former coal secretary P C Parakh. Singh and the other accused have been asked to appear in court on April 8, a bewildering twist in the career of the distinguished economist credited with unshackling the Indian economy and who is well regarded for his personal integrity.
Singh is the second former prime minister to be summoned as an accused in a criminal case after PV Narasimha Rao, who was charge-sheeted in three cases before he was acquitted.
He sought to put a brave front, saying he was "open to legal scrutiny". "Of course, I am upset but this is part of life. I hope in a fair trial, I will prove my innocence," he told reporters. However, the attempt at normalcy did not look convincing. He looked distraught and, according to sources, was shattered by the bolt from the judiciary.
The former PM held charge of the coal portfolio in 2005 when Talabira-II was allotted to Hindalco. The firm was earlier denied the mine.
The court said Singh acted in "complete disregard to the direction of law, rules/regulations and guidelines" to "accommodate" Hindalco in Talabira-II allocation in 2005. It emphasized that being in charge of the coal portfolio, Singh was the "competent authority", in other words, the person with whom the final decision rested. It also said Singh took undue interest in reversing the decision not to allocate Talbira-II coal block to Hindalco.
For Birla, the court observed that he actively tapped his "political and bureaucratic channels" to secure allocation of Talabira-II in favour of his firm.
"Prima facie, it is clear that the impugned criminal conspiracy which was initially conceived by Shubhendu Amitabh and D Bhattacharya and Kumar Mangalam Birla and M/s Hindalco was carried out further by roping in P C Parakh, who was secretary (coal), and thereafter the then minister of coal," judge Parashar said.
Significantly, Parashar observed that while arriving at a conclusion regarding prima facie involvement of Singh, it had to act with a "heavy conscience and with full realization that... the observations/conclusions being made in the order will have over the morale of the country as a whole".
The court had earlier disregarded the closure report filed by the CBI which said it had found no evidence of wrongdoing against the former PM, and asked the agency to investigate further.
On Wednesday, it maintained that prima facie offences of criminal conspiracy, criminal breach of trust of IPC and offences under provisions of Prevention of Corruption Act were made out against them. The charges invite a punishment of up to life imprisonment, if found guilty.
Singh had defended and taken full responsibility for the allocation to Hindalco three days after CBI registered an FIR on October 16, 2013. "The Talabira coal allocation is a case where the final decision differed from the earlier recommendation of the screening committee. This was done following a representation received by the PMO from one of the parties which was referred to the coal ministry," Singh's office had said in a statement.
Singh had also said that he was satisfied that the final decision taken was entirely appropriate and based on merits of the case. Singh, in his statement, had delved on the issue by giving a detailed sequence of events about his meeting with Birla, letter written by Odisha CM Naveen Patnaik to him and recommendations of the screening committee.
But the court remained unmoved, with Parashar terming the conspiracy a "well-designed exercise" involving "concerted efforts" from all the accused and saying that it was initiated by the representatives of Hindalco with involvement of various public servants at different levels in the ministry of coal and the PMO.
With regard to Singh, the court said that prima facie, it appeared that guidelines were violated on his orders to illegally allot a coal block to Birla's firm. Elaborating on Singh's alleged role, the court said he, being the coal minister, was the competent authority having dominion over the said resources and was the person responsible for the proper allocation of said natural resources in an objective manner and with due process of law.
"In the name of saving coal lying beneath the barrier between Talabira-II and Talabira-III coal block, a private company i.e. Hindalco was even allotted a coal block which was not even kept open for allocation to private companies. Admittedly Talabira-III coal block was with MCL and was exclusively reserved for PSU," it said.
Elaborating on Singh's role, the court said he allowed the matter pertaining to allocation of Talabira II coal block to be "reopened" even though initially, he himself had permitted approval of minutes of 25th screening committee recommending allocation of the coal block to Neyveli Lignite Corporation Ltd (NLC) and not Hindalco.
"The repeated reminders from PMO, written as well as telephonic, to MOC (ministry of coal) to expeditiously process the matter in view of the letters received from Kumar Mangalam Birla also prima facie indicate the extra undue interest shown by the PMO in the matter," the court noted. Stating that various acts of Singh indicated his involvement in the conspiracy, the court said the fact that he chose to keep the coal portfolio with him despite being the PM also raised questions.
The court said Singh had approved a proposal put forth by Parakh to accommodate Hindalco in Talabira II and III coal block while ignoring the caution of two officials of the PMO. It also noted that the "omission" to not refer the request of Hindalco to the screening committee in accordance with established procedure, prima facie showed that it was a "conscious decision" by the accused to accommodate Hindalco in a joint coal block comprising Talabira-II and Talabira-III coal block. "His (Singh's) action thus prima facie resulted in loss to NLC which was a PSU and facilitated windfall profits to a private company i.e. M/s Hindalco," the judge said, adding wrongful loss was caused to the government.
Dealing with the roles of various officials of the Aditya Birla Group in the conspiracy, the court said it appeared that the conspiracy was initially conceived by Amitabh and Bhattacharya but was joined by Birla who played an "active part" in the plan to tap bureaucratic and political channels. "Kumar Mangalam Birla being the chairman of a leading industrial house of the country thus along with Bhattacharya and Amitabh started exercising his influence over the political and bureaucratic channels in order to secure allocation of Talabira-II coal block in favour of M/s Hindalco," the court said.
Elaborating on Birla's influence in political circles, the judge said "he had also convinced the then Odisha chief minister Naveen Patnaik to write a recommendation letter to the PM for favouring his firm". However, the judge added that Patnaik was not part of the criminal conspiracy.
Regarding Parakh's role, the court said being the then coal secretary, he was also chairman of the 25th screening committee and while proposing the new options of accommodating M/s Hindalco in Talabira-II and III coal block, he did not mention anything about the already approved guidelines.
A special CBI court on Wednesday stunned former prime minister Manmohan Singh and his Congress colleagues by summoning him as an accused in a case of alleged illegal allocation of a coal block to Kumar Mangalam Birla's Hindalco at the cost of public sector Neyveli Lignite Corporation.
Along with Singh, special judge Bharat Parashar also summoned Birla and two senior officials of Hindalco, Shubhendu Amitabh and D Bhattacharya, and former coal secretary P C Parakh. Singh and the other accused have been asked to appear in court on April 8, a bewildering twist in the career of the distinguished economist credited with unshackling the Indian economy and who is well regarded for his personal integrity.
Singh is the second former prime minister to be summoned as an accused in a criminal case after PV Narasimha Rao, who was charge-sheeted in three cases before he was acquitted.
He sought to put a brave front, saying he was "open to legal scrutiny". "Of course, I am upset but this is part of life. I hope in a fair trial, I will prove my innocence," he told reporters. However, the attempt at normalcy did not look convincing. He looked distraught and, according to sources, was shattered by the bolt from the judiciary.
The former PM held charge of the coal portfolio in 2005 when Talabira-II was allotted to Hindalco. The firm was earlier denied the mine.
The court said Singh acted in "complete disregard to the direction of law, rules/regulations and guidelines" to "accommodate" Hindalco in Talabira-II allocation in 2005. It emphasized that being in charge of the coal portfolio, Singh was the "competent authority", in other words, the person with whom the final decision rested. It also said Singh took undue interest in reversing the decision not to allocate Talbira-II coal block to Hindalco.
For Birla, the court observed that he actively tapped his "political and bureaucratic channels" to secure allocation of Talabira-II in favour of his firm.
"Prima facie, it is clear that the impugned criminal conspiracy which was initially conceived by Shubhendu Amitabh and D Bhattacharya and Kumar Mangalam Birla and M/s Hindalco was carried out further by roping in P C Parakh, who was secretary (coal), and thereafter the then minister of coal," judge Parashar said.
Significantly, Parashar observed that while arriving at a conclusion regarding prima facie involvement of Singh, it had to act with a "heavy conscience and with full realization that... the observations/conclusions being made in the order will have over the morale of the country as a whole".
The court had earlier disregarded the closure report filed by the CBI which said it had found no evidence of wrongdoing against the former PM, and asked the agency to investigate further.
On Wednesday, it maintained that prima facie offences of criminal conspiracy, criminal breach of trust of IPC and offences under provisions of Prevention of Corruption Act were made out against them. The charges invite a punishment of up to life imprisonment, if found guilty.
Singh had defended and taken full responsibility for the allocation to Hindalco three days after CBI registered an FIR on October 16, 2013. "The Talabira coal allocation is a case where the final decision differed from the earlier recommendation of the screening committee. This was done following a representation received by the PMO from one of the parties which was referred to the coal ministry," Singh's office had said in a statement.
Singh had also said that he was satisfied that the final decision taken was entirely appropriate and based on merits of the case. Singh, in his statement, had delved on the issue by giving a detailed sequence of events about his meeting with Birla, letter written by Odisha CM Naveen Patnaik to him and recommendations of the screening committee.
But the court remained unmoved, with Parashar terming the conspiracy a "well-designed exercise" involving "concerted efforts" from all the accused and saying that it was initiated by the representatives of Hindalco with involvement of various public servants at different levels in the ministry of coal and the PMO.
With regard to Singh, the court said that prima facie, it appeared that guidelines were violated on his orders to illegally allot a coal block to Birla's firm. Elaborating on Singh's alleged role, the court said he, being the coal minister, was the competent authority having dominion over the said resources and was the person responsible for the proper allocation of said natural resources in an objective manner and with due process of law.
"In the name of saving coal lying beneath the barrier between Talabira-II and Talabira-III coal block, a private company i.e. Hindalco was even allotted a coal block which was not even kept open for allocation to private companies. Admittedly Talabira-III coal block was with MCL and was exclusively reserved for PSU," it said.
Elaborating on Singh's role, the court said he allowed the matter pertaining to allocation of Talabira II coal block to be "reopened" even though initially, he himself had permitted approval of minutes of 25th screening committee recommending allocation of the coal block to Neyveli Lignite Corporation Ltd (NLC) and not Hindalco.
"The repeated reminders from PMO, written as well as telephonic, to MOC (ministry of coal) to expeditiously process the matter in view of the letters received from Kumar Mangalam Birla also prima facie indicate the extra undue interest shown by the PMO in the matter," the court noted. Stating that various acts of Singh indicated his involvement in the conspiracy, the court said the fact that he chose to keep the coal portfolio with him despite being the PM also raised questions.
The court said Singh had approved a proposal put forth by Parakh to accommodate Hindalco in Talabira II and III coal block while ignoring the caution of two officials of the PMO. It also noted that the "omission" to not refer the request of Hindalco to the screening committee in accordance with established procedure, prima facie showed that it was a "conscious decision" by the accused to accommodate Hindalco in a joint coal block comprising Talabira-II and Talabira-III coal block. "His (Singh's) action thus prima facie resulted in loss to NLC which was a PSU and facilitated windfall profits to a private company i.e. M/s Hindalco," the judge said, adding wrongful loss was caused to the government.
Dealing with the roles of various officials of the Aditya Birla Group in the conspiracy, the court said it appeared that the conspiracy was initially conceived by Amitabh and Bhattacharya but was joined by Birla who played an "active part" in the plan to tap bureaucratic and political channels. "Kumar Mangalam Birla being the chairman of a leading industrial house of the country thus along with Bhattacharya and Amitabh started exercising his influence over the political and bureaucratic channels in order to secure allocation of Talabira-II coal block in favour of M/s Hindalco," the court said.
Elaborating on Birla's influence in political circles, the judge said "he had also convinced the then Odisha chief minister Naveen Patnaik to write a recommendation letter to the PM for favouring his firm". However, the judge added that Patnaik was not part of the criminal conspiracy.
Regarding Parakh's role, the court said being the then coal secretary, he was also chairman of the 25th screening committee and while proposing the new options of accommodating M/s Hindalco in Talabira-II and III coal block, he did not mention anything about the already approved guidelines.
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