Coal Scam in India.
                     COAL SCAM IN 
INDIA
INTRODUCTION
• A special court of the Central Bureau 
of Investigation sentenced former 
secretary H.C. Gupta, former joint 
secretary in Coal Ministry K.S. Kropha 
and former director of Coal Ministry 
K.C. Samaria two years in prison for 
their involvement in the Coal Scam. 
Source: indianexpress.com
COAL SCAM 
• This case dealt with alleged irregular 
allocation of coal blocks in Madhya 
Pradesh to Kamal Sponge Steel & 
Power Ltd. (KSSPL).
Source: indianexpress.com
CRIMINAL CHARGES
• Among the charges, one of the prime 
offences was abuse of public office, 
securing pecuniary advantage 
without public interest and criminal 
conspiracy. 
Source: indianexpress.com
ILLEGAL ALLOCATION
• A report by the Comptroller and 
Auditor General of India showed 
inefficient and possibly illegal 
allocation of coal blocks between 
2004 and 2009.
Source: indianexpress.com
ESTIMATION
• It estimated loss to the exchequer to 
the tune of Rs 10.7 lakh crore, but it 
later toned this amount down to Rs 
1.86 lakh crore in the final report.
Source: indianexpress.com
COMPETITIVE BIDDING
• The central point of the CAG report 
that showed improper allocation was 
that the government had the 
authority to allocate the coal blocks. 
• However, this was to be done via 
competitive bidding. 
• But the government chose to take 
another route and avoided 
competitive bidding.
Source: indianexpress.com
PRESUMPTIVE LOSS 
• CAG observed the revenue secured 
from the allottees for allocation was 
much less than what could have been if 
there was competitive bidding–hence 
presumptive loss to the exchequer.
• The presumptive loss was factored in to 
estimate the windfall gains to allottees 
first at Rs 10.673 lakh crore and later 
toned down to Rs 1.856 lakh crore. 
Source: indianexpress.com
STATEMENT OF PRIME MINISTER
• After the CAG submitted its final 
report to Parliament, then Prime 
Minister Manmohan Singh read a 
statement that rebutted the report in 
the alleged/presumptive loss as well 
as the reading of the law. 
• He had also said that the 
observations of the CAG were 
disputed.
Source: indianexpress.com
BJP FILED A COMPLAINT 
• The initial CAG report didn’t talk 
about corruption, rather inefficient 
allocation. 
• However, after BJP filed a complaint 
with the Central Vigilance 
Commission, the CVC directed CBI to 
probe the matter for corruption. 
Source: indianexpress.com
STATEMENT OF PARLIAMENTARY 
STANDING COMMITTEE 
• A report of the parliamentary 
standing committee said that the 
allocation of blocks between 1993 
and 2008 had been unauthorised.
• Over the course of the investigation, 
Supreme Court constituted a special 
court to try all cases related to the 
coal scam. 
Source: indianexpress.com