CBI Special Court Clears Trio in High-Profile Coal Block Allocation Case
In a significant verdict, a Central Bureau of Investigation (CBI) special court in Nagpur on Friday acquitted prominent Nagpur businessman Manoj Jayaswal, former Member of Parliament Vijay Darda, and former coal secretary H.C. Gupta in an alleged coal block allocation scam case dating back to the Congress-led United Progressive Alliance (UPA) regime. The court emphasized that the allocation constituted a policy decision and could not be deemed contrary to public interest.
Court Ruling: Allocation Was Policy-Based, Not Criminal
The court explicitly stated that the CBI failed to substantiate claims that the allocation of the Bander coal block in Yavatmal to Jayaswal's company was executed without public interest or resulted in the accused obtaining any valuable consideration. "Allocation of coal blocks was a policy decision taken in accordance with the energy coordination committee and the Prime Minister's Office at that time," the court noted. It elaborated that the decision followed thorough deliberation, review of applicant information, and feedback from the state government and Ministry of Steel.
Furthermore, the court dismissed allegations that Darda received kickbacks amounting to Rs 24 crore, citing insufficient evidence. This case marks the first acquittal for Jayaswal, who has faced multiple coal-related legal battles over the past decade. A company official highlighted that Jayaswal was previously discharged in another case due to the non-filing of a chargesheet.
Background: Coal Scam and Legal Proceedings
The coal scam originated from the allocation of coal blocks during the UPA government, a system later scrapped and replaced with an auction method by the National Democratic Alliance (NDA) administration. In 2012, the Comptroller and Auditor General (CAG) criticized the allocation process as flawed, estimating windfall gains of approximately Rs 1.86 lakh crore for private entities. This report triggered a series of legal cases, with over 50 currently under judicial review, targeting allottees for alleged misrepresentation and government officials for corruption.
Jayaswal's legal history includes convictions in two other coal scam cases where the CBI submitted closure reports. However, in this instance—where the agency filed a chargesheet—he has been exonerated. His lawyer, Mudit Jain, mentioned that appeals have been lodged against the prior convictions, arguing that the court took cognizance independently despite CBI closure reports. The acquittal is expected to bolster Jayaswal's arguments in these appeals, according to his legal team.
Additional Context: Project Delays and Family Disputes
The court also addressed delays in another project at Tarsi village in Nagpur, attributing them not to dishonest intent but to a protracted family dispute adjudicated at the Company Law Board. This verdict represents the first chargesheet filed in the coal scam series, underscoring the complexities of distinguishing between policy decisions and criminal misconduct in high-stakes economic cases.
