India

Government embroiled in coal scandal


Published

The Indian government has been accused of losing the state $205 billion (Rs.10.67 lakh crore) in lost revenue by failing to follow auctions for the sale of coal blocks.

A draft report by the Comptroller and Auditor General (CAG) has suggested that 155 coal acreages were sold without auction between 2004 and 2009. The beneficiaries were more than 100 private companies and some smaller state institutions, all of whom have made large profits from the concessions.

The scandal is promising to be even bigger than the 2G spectrum scandal of 2010/2011 which reportedly lost the Indian government around $35 million as a result of illegal sales of licences.

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