The Coal Ministry has issued show-cause notices to the nine companies named by the Central Bureau of Investigation (CBI) in the First Information Reports (FIRs) to respond to allegations made against them.
The Ministry says that if the companies do not respond within 15 days from the date of notice then it intends to take ‘civil-action’ and de-allocate the blocks given to them.
The companies include Grace Industries, Vikash Metals and Powers, Green Infrastructure, Kamal Sponge Steel and Power, JLD Yavatmal Energy, JAS Infrastructure Capital, AMR Iron and Steel, Navbharat Power and Vini Iron and Steel Udyog.
“The Ministry would take a civil action. Parallely the CBI investigations will continue including filing of criminal cases against them,” said a Coal Ministry official.
The CBI has booked these firms for giving false information about their structure, net worth, tie-up with other players and details of existing coal blocks while applying for new blocks.
Some of the promoters have also sold their stake in the companies soon after allocations.
“The basic information was provided to the investigating agency by the Ministry. The CBI followed them by on-ground investigations,” the official added.
However, industry watchers see the Ministry’s move as a step to save its case. The applications were scanned by the Ministry and then it decided to allocate the blocks.
The official indicated that there were discrepancies in coal block allocation in the past, as many of these companies did not seek any regulatory clearances after getting the mines.
However, all blame cannot be put on the Ministry as States recommended the allocations, he said.
CBI filed its first set of FIRs in September, which was followed by two more sets. Currently, the investigative agency is questioning officials involved, but no arrests have been made so far.