States deny nod for CBI probe

• CBI can on its own launch probe against central firms
• In the case of State PSUs, it needs respective State nod
• Of 20 States, only Jharkhand gave permission to CBI

New Delhi (PTI): Nineteen of 20 states have given a cold shoulder to CBI's request for sanction to start probe into the alleged corruption in the coal blocks allocation done through the joint venture route. CBI sources said Jharkhand is the only state which has given the go-ahead to the agency to initiate probe relating to one of the three preliminary enquiries registered by it last year in the coal block allocation scam. The probe in the scam is being closely monitored by the Supreme Court. Based on source information, the agency had registered a preliminary enquiry in September, 2012 to look into alleged irregularities in the allocation of coal blocks to the state governments' mineral corporations and PSUs which have entered into joint ventures with private sector under the Government Dispensation Category from 1993 onwards. Since October last year, the agency is struggling to get the nod of the states for filing regular cases in connection with the probe into joint ventures and repeated reminders have been of no help, the sources said. Besides Jharkhand, the agency has also sent its requests to 19 states including Chhattisgarh, Odisha, Madhya Pradesh, West Bengal seeking their nod for probing the joint venture projects of their public sector undertakings but so far no response has been received from them. The sources said while the permission is not required by the agency where central PSUs are involved, its jurisdiction does not extend to state government undertakings where it cannot proceed without the nod of the government concerned. Under the joint venture mechanism, coal blocks are allocated to a state corporation which enters in a joint venture with a private player. The benefit to the corporation is that while it makes virtually no investment, it holds majority stake as sweat equity in the venture. The agency found that companies owned by relatives of influential politicians have entered into joint ventures with the state PSUs to bag these lucrative blocks.