Vidarbha Farmers welcome de-allocation of four vidarbha Coal-Blocks and Demands Land back to Farmers
Nagpur -13th September 2012
Vidarbha farmers welcome The Inter-Ministerial Group (IMG) decision of de-allocation of four vidarbha mines located in agrarian crisis hit region allotted to private firms .thousands on hector of land was acquired in throw away price by giving job promises to farmers but it was eye wash hence now as coal of Marki-Mangli and chinora –warora has been de-allocated the land acquired for the purpose should be restored to original farmers who are now landless and facing starvation , informed Kishore Tiwari president of farmer’s advocacy group Vidarbha Janandolan Samiti working for right of the dying farmers of vidarbha region.
‘The Inter-Ministerial Group (IMG) has taken decision too late to control damage when there was huge controversy broke out over the allocation of coal blocks after the recent CAG report that criticised the government for allotting them in a non-transparency ways and massive fraud was unearthed hence now as allocation was illegal then all action taken threinafter are also illegal hence when demand return of land to original farmers with out delay”Tiwari added.
It is utmost necessary to draw attention of the media to another aspect of COALGATE which is the hoarding of land. Hence we call the scandal not coalgate but COAL-LAND-GATE. The modus operandi used by coal scammers is as follows.Coal mines are land intensive projects, much more land intensive than a normal industry. To grab the land these coal mafias initiated land acquisition process through government under Land Acquisition Act. Often giving unrealistic estimate of land required for starting a coal mine which they were never going to start. In the process they made hundreds and thousands poor farmers landless. Often paid the remuneration in installments over a long period of time. Land acquisition packages often contain the condition of employing at least one person from each of affected families.
Even after decision of The Inter-Ministerial Group (IMG) of de-allocation these mines in vidarbha the next list of CBI FIR against Coalgate companies of Nagpur is missing names who have sold off millions of tons of coal in open market and coalmines allocated to them for captive plant at windfall profits and the truth behind these thousands of crore profit is more shocking and disturbing as Modus operandi of these businessmen is still untold . Vidarbha Farmers who lost thousands of hector land in agrarian crisis hit region at throw away price demanded immediate action against kingpin Govind Daga and his associates Mohan Agrawal , Ashok Daga, Nandkishore Sarda others prominent businessman from the region, who were the real beneficiaries of a flawed policy of the ministry of coal. They further tweaked the flawed policy to their benefit in collusion with power that be. Companies floated by them were allotted coal blocks for captive use during NDA regime, some of whom have traded in coal blocks that were allotted free and made hundreds of crores and splurged on luxuries but still there is no action against them. The delay in CBI FIR against Govind Daga and his associates who first bagged a lot of coal blocks ostensibly to set up steel and power projects, only to sell them and laugh all the way to the bank with scores of crores is shocking and seems to be stage managed, informed Kishore Tiwari .
It is alleged that CBI is protecting them as officials in PMO and Ministers in Maharashtra Govt. are directly involved and rules were flouted to regularise the sin committed by by Govind Daga and his associates of Nagpur as this is much bigger scam of captive mine than the one in which Jindal Power was involved. Jindal Power manged to get coal mine without any limit on selling rate of the end product ‘power’ and made thousands of crores but Govind Daga went a step further as he managed to get condition of captive use itself waived and sold coal to outside parties through his company Central Collieries Co Ltd. Govind Daga sold lacs of tones of coal in open market without proper documents through a sole selling agent Nair Sons.
Even the Balance Sheet filed with ROC shows sale of coal even when there was no end use utilization plan. Sources tell that amount shown in Balance Sheet was only a tip of ice berg. Question would arise why Govind Daga showed blatantly illegal sale of money in Balance Sheet. It looks it was done to repay the installments of SBI Loan and return the amount of loan obtained from sister concern Central Cables Ltd. Even the Central Govt. accused Govind Daga of selling coal illegally in collusion with state Govt officials, Tiwari alleged.
CBI is keeping blind eye over issue as coal mines cannot be allocated to private operators but for captive use for production of specified end products whereas here is gross violation as Govind Daga managed to get done just that for their company Central Collieries Co ltd through state Govt wide their letter dated 15.10.99. Through that letter State Govt waived the condition of captive use. Under law State Govt has no such power whatsoever. It is learnt that Dagas have been allocated at least six captive blocks through various proxies since 98. None of them ever became operational as far as end use is concerned. It is reliably learnt that Govind Daga and his associates managed hoard coal mines without ever going into power generation by getting certificate from State Govt that their was no demand of power in Maharashtra when there was power crisis in Maharashtra at it’s pick .without putting any industry Govind Daga and his associates of Nagpur have managed to sell one block for a consideration of more than 600 crores wherein they have invested a total sum of Rs 5 crores. Windfall gains of 12000% , Even coal mafias of Dhanbad would be ashamed.It is reliably learnt that Coal India through WCL wrote to coal ministry for allotment of these coal blocks but their claim was brushed aside as these private players without any net worth and no track record were to be favored. That is reason why CBI action is delayed, Tiwari asked..
Govind Daga runs a small company in Nagpur called Central Cables Ltd which had a turnover of 20 to 50 crores from time to time. The company is sick and almost closed now. Govind Daga funded their ventures from the coffers of this company in contravention of section 370 of Companies Act. It is reliably learnt that though the year end Balance sheets showed advances to group companies within legal limits but those limits had been breached for periods between Balance Sheet dates. In short Balance Sheets were window dressed. ROC has been keeping mum over issue even after number of complaints. It is serious issue because Central Cables Ltd is a public limited company and public holds share in that company and they never got benefited from allocation of coal mines to Govind Daga, Tiwari added..
Even bigger surprise is that how Govind Daga managed to get his venture Central Collieries Co Ltd financed from State Bank despite violation of condition of captive use. It is reliably learnt that SBI officials were brutally politically pressurized for that.Maharashtra Govt. was actively involved in land acquisition and farmers were given very low price and they were given false job promise too but neither ruling or opposition parties objected to the misdeed. It is also reported that Govind Daga has been taking legal advise from senior minister of UPA Govt. Kapil Sibal then as advocate to sell coal in open market allotted for captive plant hence CBI is shielding Govind Daga and company hence on behalf of landless farmers, we demand thorough investigation and restoration of land and compensation for lost years, Tiwari urged..