The Coal Scam of 2012, also known as the Coalgate Scandal, was a major corruption scandal that involved the allocation of coal blocks by the Indian government to private companies without following a transparent bidding process.
The scam resulted in significant financial losses to the government and caused public outrage across the country.
2005: The Indian government introduces the process of allocating coal blocks to private companies through a screening committee.
2012: The Comptroller and Auditor General (CAG) of India releases a report stating that the government’s inefficient allocation of coal blocks to private companies resulted in a loss of INR 1.86 lakh crore ($26 billion) to the exchequer.
2012: The Central Bureau of Investigation (CBI) begins investigating the case and files a First Information Report (FIR) against several private companies and government officials.
2013: The Supreme Court of India declares the allocation of coal blocks to private companies as illegal and cancels 214 coal blocks.
2014: The CBI files chargesheets against several private companies and government officials, including former Minister of Coal, Dasari Narayana Rao.
Dasari Narayana Rao, former Minister of Coal
Naveen Jindal, Chairman of Jindal Steel and Power Limited
Vijay Darda, Member of Parliament and Chairman of Lokmat Media
Manmohan Singh, former Prime Minister of India
The coal blocks were allocated to private companies by the Indian government through a screening committee, which had the power to recommend allocation of coal blocks to private companies.
However, the allocation process was opaque and lacked transparency.
Private companies used their influence and political connections to secure coal blocks, resulting in significant losses to the government.
The Coal Scam was exposed by the CAG report of 2012, which highlighted the inefficiencies and lack of transparency in the allocation process.
The Supreme Court of India also played a crucial role in exposing the scam by declaring the allocation of coal blocks to private companies as illegal.
The Coal Scam was widely covered by the Indian media, with several news channels and newspapers publishing reports and conducting investigations into the matter.
The media coverage played a crucial role in bringing the issue to public attention and raising awareness about the corruption and inefficiencies in the allocation process.
The Coal Scam had significant consequences for the Indian economy and the political landscape of the country.
The scam resulted in significant financial losses to the government, and the cancellation of coal blocks impacted several industries, including power and steel.
The Coal Scam also had political ramifications, with several high-profile politicians and government officials being implicated in the case.
The scam became a major issue in the 2014 Lok Sabha elections, with the opposition parties using it as a campaign issue against the ruling government.
The Coal Scam of 2012 was a major corruption scandal that exposed the inefficiencies and lack of transparency in the allocation process of coal blocks in India.
The exposure and coverage of the scam highlighted the need for stronger regulatory mechanisms and transparency in the allocation of natural resources in the country.
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