New Delhi:
The political storm over the Coal-Gate affair has paralysed parliament for eight days, and is picking up speed now to cause serious damage.
The CBI, which is investigating the sale of coal blocks to private firms, is focusing on whether some of these companies sold equity in violation of the conditions of their contracts.
Once companies were given coal licenses, their value increased. Some shareholders then siphoned off a part of their stake, which was not permitted. 12 companies are being investigated for allowing stakeholders to sell shares.
The CBI is also studying links between the shareholders of companies that got coal blocks and members of a screening committee who decided on their applications. The inter-ministerial panel included members of state governments and other stakeholders.
The CBI also says that it may question bureaucrats involved with the decision-making process. Sources in the investigating agency say they cannot rule out the questioning of members of the Prime Minister's Office.
The opposition BJP says documents prove that the Prime Minister's Office intervened to help a company named SKS Power and Ispat Limited a coal field in Chhatisgarh. In 2008, Subodh Kant Sahai, who was a union minister and is still a cabinet member, wrote to the PM's office lobbying for coal blocks for SKS. His brother is an Honorary Director for the firm. A day after Mr Sahai's letter was received, the PM's Office forwarded it to the Coal Ministry. Months later, in July, one of the coal blocks requested was assigned to SKS.
The BJP alleges that this exposes the crony capitalism and lack of transparency that was operational on the PM's watch.
Mr Sahai has denied influencing the decision. He says he simply asked for an evaluation of a company that appeared to have good credentials for development and infrastructure.
The CBI, which is investigating the sale of coal blocks to private firms, is focusing on whether some of these companies sold equity in violation of the conditions of their contracts.
Once companies were given coal licenses, their value increased. Some shareholders then siphoned off a part of their stake, which was not permitted. 12 companies are being investigated for allowing stakeholders to sell shares.
The CBI is also studying links between the shareholders of companies that got coal blocks and members of a screening committee who decided on their applications. The inter-ministerial panel included members of state governments and other stakeholders.
The CBI also says that it may question bureaucrats involved with the decision-making process. Sources in the investigating agency say they cannot rule out the questioning of members of the Prime Minister's Office.
The opposition BJP says documents prove that the Prime Minister's Office intervened to help a company named SKS Power and Ispat Limited a coal field in Chhatisgarh. In 2008, Subodh Kant Sahai, who was a union minister and is still a cabinet member, wrote to the PM's office lobbying for coal blocks for SKS. His brother is an Honorary Director for the firm. A day after Mr Sahai's letter was received, the PM's Office forwarded it to the Coal Ministry. Months later, in July, one of the coal blocks requested was assigned to SKS.
The BJP alleges that this exposes the crony capitalism and lack of transparency that was operational on the PM's watch.
Mr Sahai has denied influencing the decision. He says he simply asked for an evaluation of a company that appeared to have good credentials for development and infrastructure.
