New Delhi:
The Central Bureau of Investigation (CBI) in its first information report (FIR) has claimed aluminium-maker Hindalco, a unit of the Aditya Birla Group, was shown "undue favour" in obtaining mining rights in 2005. It has accused industrialist Kumar Mangalam Birla, chairman of conglomerate Aditya Birla Group, and the former coal secretary PC Parakh of conspiracy in the coal allotments.
In the FIR, the investigating agency has said that Hindalco's application was first rejected citing reasons. But after Mr Birla met Mr Parakh in July 2005, the coal secretary ignored the deliberations of the screening committee and allotted Hindalco a coal block.
Sources in the CBI said that raids at Hindalco in Delhi produced 25 crores in cash that allegedly could not be accounted for.
Both Mr Birla and Mr Parakh have denied being part of any conspiracy. Mr Parakh it was "the prime minister, who as the coal minister, took the final decision" on the allotments and demanded to know why Dr Singh had not been named in the FIR. (
Read: Name PM too, says former coal secretary)
After the FIR, the BJP today stepped up pressure on the PM. "We're all aware of the fact he (Singh) was coal minister during the period of the scam and every coal block allotment was done with his signature. How can the prime minister escape responsibility?" Yashwant Sinha, a senior BJP leader and former finance minister said. (
Watch: PM faces coal heat)
The opposition has repeatedly called on Dr Singh to resign over the alleged scandal in which the government auditor accused the government of under-pricing the coalfields and giving away billions of dollars in windfall gains to firms. The BJP has alleged kickbacks for the allotments, made without any transparent bidding process, went to the Congress party and its leaders.
Dr Manmohan Singh headed the coal ministry in 2005 and between 2006 and 2009 when many of the allocations were made. He has strongly rejected accusations of wrongdoing in what has come to be dubbed "Coalgate".
The CBI's decision to file a case against Kumar Mangalam Birla, 46, viewed by peers as a conservative businessman who plays by the rules, provoked shock in the corporate community and made front-page headlines in newspapers. Mr Birla joins a string of prominent figures accused in the investigation.
The police have lodged 14 FIRs in the case.