Hindalco Industries has denied any wrongdoing and said it would defend itself and its top officials legally.
“Hindalco reiterates that none of its officials, including its Chairman Kumar Mangalam Birla, have pursued any unlawful or inappropriate means for securing the allocation of the coal block,” the company said in a statement. “Hindalco will study the order in detail and defend the case through the legal process. We have cooperated with the investigating authorities completely during the course of investigation since October 2013,’’ the statement added.
The company said it had represented its case to the authorities concerned in a ‘transparent and lawful manner’, following which it was allocated a 15 per cent share in the combined Talabira-II and III coal block in November 2005 in a joint venture with Mahanadi Coalfields Ltd. and Neyvili Lignite Corporation, both public sector undertakings, with a combined 85 per cent stake.
The allocation was made for Hindalco’s Aditya Aluminium Project in Odisha, which has been set up at an investment of over Rs 13,000 crore. The plant is already operational without supplies from Talabira-II & III coal blocks, which were de-allocated in 2014. Due to this, Hindalco said it was importing coal and bearing additional financial stress.
Uncertainty The Confederation of Indian Industry said “Such judicial orders create uncertainty and anxiety in the minds of investors and dissuade businesses from investing in the country and taking forward the ‘Make in India’ initiative.’’
“It is our belief that Mr. Birla represents the progressive face of Indian industry, which does not indulge in crony capitalism and carries out his businesses by the book. Reputations of institutions and individuals take years to build and can be easily destroyed by actions if they are not well thought through,” it said.
Surprised
Godrej Group Chairman Adi Godrej told The Hindu : “I am surprised. I personally do not know the details of the case. It is normal for senior business leaders to meet with government officials and ministers to take up their cases. I don’t find anything wrong in this unless you do something unethical.”
Shares plunge Shares of Hindalco Industries plunged by over five per cent on Wednesday. The sharp loss was accompanied by huge volume.
On the BSE, the shares lost Rs. 7.60 (5.51 per cent) to close at Rs. 130.45 with 22.44 lakh shares changing hands.
On the NSE, the shares were down by 5.11 per cent (Rs.7.05) to end at Rs. 131 with a volume of 2.16 crore shares.
Dr. Singh and the Coal trail
- ›March 2012 CAG’s draft report accuses govt of ‘inefficient’ allocation of coal blocks in 2004-2009; estimates windfall gains to allottees at Rs 10.7 lakh crore.
- ›May 29, 2012 Prime Minister Manmohan Singh offers to give up his public life if found guilty in the scam. Two days later, CVC directs a CBI enquiry
- ›November 25, 2014 CBI informs a special court that it was not permitted to question former Prime Minister Manmohan Singh. The investigating agency also said it wasn't necessary.
- ›December 17, 2014 Special court ordered the CBI to examine former Prime Minister Manmohan Singh.
- ›January 20, 2015 CBI records the statement of former Prime Minister Manmohan Singh.
- ›March 11, 2015 Special court summons former Prime Minister Manmohan Singh, Kumar Mangalam Birla and P.C. Parakh as accused.
- >Detailed timeline of the coal scam
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