COAL SCAM CASE: CBI writes to Jharkhand government to seek sanction to prosecute former CM Madhu Koda

New Delhi: The Central Bureau of Investigation (CBI) writes to Hemant Soren-led state government of Jharkhand to prosecute former Chief Minister Madhu Koda in a 2015 coal scam case. Earlier in 2017, Koda was sentenced to three years in jail for ensuring the illegal allocation of the Rajhara North coal block.

Central Bureau of Investigation (CBI) writes to Jharkhand government seeking sanction to prosecute former Chief Minister Madhu Koda (in file pic) in connection with Parbatpur coal block scam. pic.twitter.com/fGsBgAg77E

— ANI (@ANI) July 21, 2020

This is the second case where a CBI probe has shown irregularities by Koda, the then Minister of Mining, Geology and Cooperative, in allocating Parbatpur Central coal block to M/s Electrosteel Castings Ltd, ECL, declared illegal by the Supreme Court in 2014.

The allocation of the Rajhara North coal block is one of the instances of alleged inefficient allocation of coal blocks during 2004 to 2009 by then UPA government at the Centre. Dubbed the coal scam, the matter became a huge political controversy after an audit by the national auditor revealed that the country has lost up to Rs 1.86 lakh crore due to inefficient allocation of coal blocks. The auditor said for over a decade, mining rights were allotted to private firms at low prices. In 2014, the Supreme Court had cancelled these allocations.