Bid to bury coal scam by cancelling allocations

The Prime Minister's Office is understood to have asked the Law Ministry to examine the legal implications of canceling all coal blocks allotted since 2004 to preempt the Supreme Court from passing any harsh order on August 27, when the CBI tells it about the missing files hampering the probe into the alleged coal scam.

The purpose is, of course, to shield Prime Minister Manmohan Singh who handled the coal portfolio from 2006 to 2009, when most of the allocations were made on the recommendation of an inter-ministerial screening committee.

The Law Ministry's view has been sought as the genuine allottees may move court against cancellation of allocations for no fault of theirs.

Sources said the government can also cite a Bill it had introduced in Parliament way back in 2004 for auction of coal blocks while pleading that the selection of allottees by the screening committee was resorted to pending passage of the Bill and it was now canceling all allocations done through this committee in view of the irregularities coming to light. Sources said the cancellation will also help douse the issue over which the BJP had blocked proceedings in both the Houses.

Once allocations are cancelled, there will be no need for the Prime Minister to give an explanation on the missing files, it is reasoned.