CAG Pegged Public Exchequer’s Loss at 1.86 Lakh Crore in Coal Blocks Allocation Scam

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CAG pegged Public Exchequer’s Loss at 1.86 Lakh Crore in Coal Blocks Allocation Scam

The Comptroller and Auditor General ( CAG ) of India in its incisive audit report noted that India’s exchequer suffered a massive loss of 1.86 lakh crore due to the distribution of coal blocks without bidding. The CAG report was tabled in the parliament on 17 August 2012.

The CAG in its report stated that 57 coal blocks that were allocated to private companies during 2004 – 2009, extended them a windfall gain of 1.86 lakh crore rupees. The CAG report has also brought Prime Minister Manmohan Singh under scrutiny as he was holding the charge of Coal Ministry from 2006 to 2009. Besides, the CAG report also raised serious allegations against the PMO which delayed the fair bidding process for coal blocks despite the clearance from Law and Justice Ministry.

Tata Group, Reliance Power, Jindal Power and Steel, Abhijit Group, Bhushan Group, Electro Steel, OP Jindal Group were some of the major beneficiaries of the coal blocks distribution.

The government has distributed about 150 coal blocks over the past eight years. During this period Prime Minister Manmohan Singh, Shibu Soren and Prakash Jaiswal has been at the helm of the Coal Ministry. The 1.86 lakh rupees scam is the biggest in the history of India as it surpassed the 1.7 lakh crore 2G spectrum scam.

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