Gold Diggers

 

 

When you hear about the coal mafia in the country the first name that comes to mind is Dhanbad. But it seems is no more true if one goes by the happenings in Chhattisgarh.

Three months ago, six members of Parliament went on a surprise visit to one of Asia’s largest coalmines, Dipika and Gevra in Korba district of Chhattisgarh. Both mines belong to the South East Coalfields Limited (SECL). To their dismay they found that while some people are producing gold from those mines, for others it is a virtual death trap.

Though on paper the mines belong to SECL, for all practical purposes they are controlled by the mafia in the guise of Ex-Servicemen Companies (ESM). While these companies are supposed only to handle the transportation of coal from the pits to the washery, what they actually deal in is smuggling of coal.

The committee set up by the coal ministry to look into allegations of siphoning of original coal had a taste of the mafiosi themselves. The committee members were attacked by unknown persons right in presence of the police force and escaped. The Sunday Indian is in possession of a video of the attack. “It was after this attack that we realised why local people call these coal mines a death bed and also why the bodies of 200 people who were said to have died in accidents were never found,” says Chander Shekhar Dubey, a member of the committee. The committee has submitted its report to the ministry, a copy of which is in the possession of The Sunday Indian. The report says, “...it is crystal clear that the entire transport system in SECL is under the control of certain ESM Companies and a private washery.”

It adds further, “...In fact, the SECL is merely conducting blasting operations and making payments to ESM companies without any proper system of weighing, checking or supervision....From these conclusions, which pertain only to SECL, the quantum of losses to CIL, taking into account all its subsidiaries, can easily be imagined. It may well be of the order of several thousand crores.”

Indeed, thousands of crores are involved in this game involving just a handful of players. And the playground is the Aryan Coal Beneficiation ltd (ACB) which lies on the land belonging to South Eastern Coalfields Ltd., right in the midst of Dipika and Gevra mines.

ACB is a washrey whose job is washing the coal. Mind you, just washing. Whatever leftover remains after washing the coal is called rejects which contains 65 per cent of ash, stone and slurry. Rest 35 per cent is coal of poor quality which has zero heat value.

The ACB has given an undertaking to the coal ministry in an MoU signed on January 6, 2003 between SECL and ACB. The undertaking says, “M/s ACB shall return the washed coal and rejects etc. to the party which has supplied the coal for washing. The washery shall not sell the washed coal and rejects to any other party.”

But at the same time the ACB made an agreement with the Gujarat State Electricity Board one of SECL’s clients to buy the reject at a cost Rs 15 per tonne. Incidentally, Reliance Energy too has a washery in the same area. It also washes same coal and disposes of the reject. In 2003 it was paying Rs. 18.50 to dispose of this reject! The chief vigilance officer of Coal India Ltd. has asked SECL many times how this agreement was made but is yet to receive an answer. The Secretary of coal ministry had also written to the relevant secretary of Gujarat that this agreement was illegal and that action should be taken against Gujarat State Electricity Board. No action has been taken yet.

This is not the first time that an allegation of fraudulent means has been raised against Aryan Washery. In 2003, Aryan was accused of selling good quality coal in the name of reject to HINDALCO. Aryan bought the same reject and sold it to Indian Enterprises, a Bilaspur based trading firm at the rate of Rs. 85 per metric ton. And Indian Enterprises resold it to HINDALCO at the rate of Rs. 1550. About 4.43 lakh tonne coal was sold like this in 2003-04.

A Supreme Court empowered committee inquired into the matter and found many deficiencies. Its 12 April 2005 report said, “...it appears that in the garb of supply of coal washery rejects, good quality coal, in all probability unauthorisedly obtained from the coal mines, has been supplied to M/s HINDALCO.”

It was exposed later that owners of Indian Enterprises and ACB are partners in other businesses too. SC’s empowered committee clearly stated: “The most surprising part is that though the above (the deal) was in full knowledge of the concerned authorities for over last two years, and serious complaints and allegations on the above issue were frequently being made by the members of Parliament and others, no effective follow up actions had been taken against the concerned suppliers, or to ensure that such practices were put to stop.”

The more surprising fact is that SECL officials got jobs in ACB after retirement. Even at present, at least 50 such officials are working with ACB, including one G. C. Mrig, Ex. CMD of SECL.

How does the ACB become so powerfull that it manages to sell extra coal in the garb of rejects? The transportation work in the mines has been given to ESM companies under a scheme of the Defense Ministry in association with Coal ministry to rehabilitate the ex-army personnel. The guidelines of the ministry clearly state that only former army personnel who are unemployed could operate these companies. At least 14 such companies are working in Dipika and Gevra mines. Most of these companies are registered in Delhi, Chandigarh and Haryana. Surprisingly 5 to 6 companies are registered in the same address. For instance C-101, LGF, New Multan Nagar, New Delhi is the registered address of five companies. Six companies are registered at G-65, Bali Nagar, New Delhi.

Intriguingly, all these ESM companies are somehow linked to the Sindhu Holdings Ltd., the group which owns ACB. One of the directors of this company is Dev Suman Sindhu, son-in-law of Sahib Singh Verma, former chief minister of Delhi. Parvesh Verma, another director of the company, is the son of Sahib Singh Verma.

There are many other companies too owned or run by Sindhu family. One of the ESM companies, Param Mitra Coal Movers was owned by Cpt. Abhimanyu Sindhu, brother of Dev Suman. Cpt. Abhimanyu was a director in ACB too. But when the Defense ministry was questioned about it, the then defense minister’s response “cleared” all the doubts. He wrote on June 12, 2006, “The fact that ex. Capt. Abhimanyu Singh was holding the posts of Director in two companies, came to the notice of DGR after closure of the above company. Therefore, no action can be initiated against him at this stage.”

About 26 ESM companies are working in Chhattisgarh and Orrissa and around Rs. 3.5 billion had been paid to these companies in three years only. How come most of them are related somehow to Sindhu family? How is that only those ex-servicemen manage to corner these companies? “We are convinced after investigations that all these companies are fake and Defense ministry’s scheme is benefiting Sindhu family only,” says Rajeev Ranjan Singh, chairperson of the committee set up by Coal Ministry.

The report given by this committee has been signed by five members of the committee except Smt. Ingrid Mcleod. When TSI asked Rudra Sen Sindhu of Sindhu family about this report, his response was, “I have not seen the report and I can not comment without reading it.” However, he was aware of the fact that one member has not signed it when he said the report is not complete.

TSI tried to contact Sahib Singh Verma too but he was not available for comments.

The CBI too had inquired into the goings on at least three occassions and after every inquiry, officials said that investigations lacked seriousness. Chief Vigilance officer said in his report: “It is felt that a more intensive investigation is warranted in the case.”

Clearly in the coal sweepstakes in India, it is political patronage that rules. B.K.Sinha

CMD, SCEL,

Bilaspur

If I will go for the recovery of the money, they will burry me into the graveyard. I am very afraid. Chander Shekhar Dubey

Member, Committee of Parliamentarian

There was immense pressure on us when we were preparing the report. Many big names called me or other members of the committee.