Law ministry advice sought on coal firms

The coal ministry on Tuesday approached the law ministry, seeking its advice on whether to immediately start the de-allocation procedure for five companies, against which the CBI had registered FIRs relating to widespread irregularities in coal block allotment last week, or wait for the court's verdict.

The coal ministry on Tuesday approached the law ministry, seeking its advice on whether to immediately start the de-allocation procedure for five companies, against which the CBI had registered FIRs relating to widespread irregularities in coal block allotment last week, or wait for the court's verdict.

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None of the blocks allotted to the five companies have started extracting coal, or are currently in a position to start doing so, from the mines.

As the FIR only lists prima facie allegations, the ministry wants to be on a sound legal footing as action can be taken against the five firms only after the CBI files a chargesheet, and subsequent conviction.

On September 4, the CBI had filed five FIRs against JLD Yavatmal Energy Ltd, AMR Iron and Steel Pvt Ltd, Nav Bharat Pvt Ltd, JAS Infrastructure Capital Pvt Ltd and Vini Iron and Steel Udyog.

The law ministry has also been asked whether these companies should also be given a show-cause notice by the inter-ministerial group - so the coal block owners can get a chance to put across their point of view.