Delhi’s Rouse Avenue Court recently framed charges against two public officials and discharged the rest of the accused in a case involving the allocation of a coal block in Maharashtra’s Yavatmal district.
Arun Bhardwaj, a special judge, framed corruption allegations against two public officials: IAS officer DG Philip and former MLA Avinash Warjukar. Warjukar was the Chairman of Maharashtra State Mining Corporation Ltd (MSMCL), while Philip was its Managing Director.
Beneficiary company Sunil HiTech Engineers Limited and its Director Sunil Ratnakar Gutte, as well as aXYKno Capital Services and its Director R Ramakrishnan, who were financial consultants to MSMCL, were discharged from the case.
The coal block has been allocated to MSMCL, a Maharashtra government-owned public-sector enterprise. It had formed a joint venture with a private company to operate and extract coal from the coal block.
The Central Bureau of Investigation (CBI) alleged that irregularities vitiated the process of selecting the joint venture partner. A tender for the selection of a joint venture partner had been floated, and several businesses that were not eligible under various clauses were illegally made eligible.
Subsequently, contrary to the terms of the bid documents and joint venture agreement, the selected joint venture partner indirectly sold or transferred a majority stake in the joint venture to another investor.
The CBI further claimed that there were irregularities in the selection of the financial consultant who advised MSMCL on the transaction.
The court filed corruption accusations against the two public workers on May 25 under Section 13(1)(d) of the Prevention of Corruption Act.
While there were prima facie reasons to charge against the beneficiary company, Sunil HiTech Engineers, it was discharged under Section 32A of the Insolvency and Bankruptcy Code, 2016 because it had undergone liquidation.
Gutte was discharged once it was discovered that he had no personal involvement in the transaction. The court, however, stated that if any evidence was presented, other Sunil HiTech Engineers directors might be summoned.
It emphasised that aXYKno Capital Services had advised MSMCL against relaxing conditions for its joint venture partner and thus could not have conspired with the beneficiaries.
The court will formally file accusations against Philip and Warjukar on July 7, 2023.
