Kumar Mangalam Birla has been charged with conspiracy and cheating in the case
The CBI has reportedly decided not to question one of India's richest industrialists, Kumar Mangalam Birla, in the coal allocation scam. Mr Birla has been charged with conspiracy and cheating to land two coal blocks in Odisha in 2005 for his firm, aluminium-maker Hindalco.
The CBI had said in October last year that Mr Birla colluded with PC Parakh, who was Coal Secretary, for the allegedly illegitimate allotment.
Mr Parakh has denied the charges and this week, he scripted a huge controversy for the Prime Minister by releasing a book in which he alleges that Dr Manmohan Singh was unable to take on vested interests to prevent corruption in the allocation of valuable coal blocks costing the country thousands of crores, a scandal dubbed "Coal-Gate."
The CBI investigation is being monitored by the Supreme Court which has ruled that the inquiry must be completed by April 30.
The fact that Mr Parakh is likely to be interrogated but Mr Birla is not could be seized by the opposition BJP to accuse the government of persecuting the former bureaucrat for his damning assessment of the Prime Minister.
Executives from Mr Birla's firm have been questioned about 20 crores in cash that was discovered in raids at company offices.
The CBI claims that a committee assigned to handle coal licenses had rejected Hindalco's application for two coal blocks, but decision was reversed by Mr Parakh after a meeting with Mr Birla. The Prime Minister held direct charge of the Coal Ministry at the time. When the CBI registered its case against Mr Parkakh and Mr Birla, the former Coal Secretary said that the Prime Minister should also be made an accused.
In a rare statement, Dr Singh's office then said that the final decision taken in favour of Mr Birla's firm was "entirely appropriate" and based on "the merits of the case."