CBI-CVC lock horns over Coalgate scam cases
CVC demanded that the CBI register cases against 14 firms, but the agency does not want to budge and is ready to challenge it.
It's all in black and white, and it's not going to blow over anytime soon. The ongoing coal scam investigation has exposed deep differences between what the Central Bureau of Investigation (CBI) and the Central Vigilance Commission (CVC) think the law should take. With the CBI deciding to take on the CVC, things could begin to turn ugly indeed from Friday as the two agencies battle it out in the Supreme Court that is monitoring the probe.
In focus are 14 companies that are involved in allocation of 64 coal blocks. The CBI thinks no case is made out; the CVC is adamantly opposed to closing these files. In a big setback to CBI Director Ranjit Sinha, the Supreme Court has asked the CVC to look into cases that the investigating agency wants to close. After scrutinising the cases, the anti-corruption watchdog rejected the CBI view that Preliminary Enquiries into the allocation of 64 blocks be closed, setting the stage for a head-on collision.
The CVC recommended that the CBI must register cases against 14 companies, but the agency does not want to budge and is ready to challenge the CVC. Incidentally, the CVC is mandated to enjoy a supervisory role over the CBI. With the CBI challenging the CVC, the stage is set for a face off between the two organisations. The CBI can't be too happy, for the CVC's recommendation on the cases came at the insistence of the Supreme Court which has described the CBI's closure reports in these cases as "unacceptable". The court wants FIRs against all 14 companies.
While the CBI registered two cases on the recommendation of the CVC, top sources said the CBI will inform the apex court about the status of the remaining cases on Friday. "We will file a status report informing the court that CVC gave reasons for registering FIRs against two companies and there was no reason assigned for the remaining 12. It merely said cases must be registered," said a top CBI officer.
"We will wait for the Supreme Court's direction on the remaining cases," the officer said.
Mail Today has accessed the list of companies that the CVC sent to the CBI for registering cases (see accompanying boxes). Of the 14, the CBI registered cases against two companies- Domco Private Limited and Vandana Vidyut Limited.
The other companies included in the list sent by the CVC for registering cases include SKS Ispat and Power Limited, Visa Power Limited, Kohinoor Steel Private Limited, IST Steel and Power Limited, RKM Power Gen, Prakash Industries, Himachal EMTA Power Limited, Ramsarup Lohh Udyog Limited, Adhunik Metaliks Limited, Pawanjay Steel & Power Limited, Rungta Projects Limited and Contisteel Limited.
Sources said there was a difference of opinion between the investigating officers, who were of the view that there is prima facie material to register cases, and senior officers who felt cases were not made out and rejected the view of their subordinates.
In an embarrassment for the senior officers, the CBI has been forced to register cases in two cases but the agency still seems to be firefighting to save itself from more blushes and not have to file FIRs in the remaining 12 cases.
In the fresh FIRs, CBI alleged that Ranchi-based Domco Private Limited entered into a criminal conspiracy with unnamed entities and submitted false information with dishonest intention to authorities while applying for a captive coal block and secured allocation of Lalgarh (North) coal block. The then director of the company allegedly gained pecuniary benefit of Rs 7 crore by selling shares of the company on premium after the allocation of the coal block, a CBI statement said.
Searches were conducted at three places at Ranchi and New Delhi. In the second case against Chhattisgarh-based Vandana Vidyut Limited, the CBI alleged there was misrepresentation of facts. Without taking names, the CBI report said the case also included members of the 35th screening committee which met on September 13, 2007. With the two new cases, the total number of FIRs in the coal scam has gone up to 22.
Relations between the CBI and CVC have not been good off late. This is not the first time differences have emerged. The row over the appointment of an Additional Director in the CBI highlighted the differences. While the CVC cleared IPS officer R.K. Pachnanda's candidature, another officer Archana Ramasundaram was appointed as she was backed by CBI chief Sinha. The appointment has been challenged in the Supreme Court.