New Delhi: The Central Bureau of Investigation (CBI) had closed the coal scam case against billionaire Kumar Mangalam Birla. CBI has closed case against Kumar Mangalam Birla and a former top bureaucrat that emerged in 2012 after CAG’s reported revenue loss to the exchequer from allocations of coal blocks.
Notify that CBI had filed the case against Birla and former Coal Secretary P.C. Parakh in 2013 in connection with a block allocated in 2005 to Hindalco Industries (HALC.NS) which is a part of the $40 billion Aditya Birla Group led by Kumar Mangalam Birla.
In its statement on Friday, CBI said, “The evidence collected during investigation did not substantiate the allegations levelled against the persons named in the FIR.”
India’s federal auditor had alleged that the government’s allocation of coal blocks may have cost the exchequer revenues of about $33 billion, although industry watchers and the previous government have cast doubts on the figure. Indian media has dubbed the scandal “coalgate”.
Notify that the Supreme Court of India had ruled that allocations of coal blocks since 1993 were illegal this week. CBI however dropped the name of Birla.