Former HC judge to probe 'coal scam'

In a press conference soon after the session, he said the alleged scams will be probed by a retired high court judge.

He said Kumaraswamy as KPCL chairman and H D Revanna as Energy Minister had caused losses to the tune of Rs 1,800 crore to the exchequer  due to “fraudulent deals”.

He said the Kumaraswamy-government had not called fresh tenders for coal washing resulting in a total loss of Rs 1,500 crore to the exchequer. The JD(S) -overnment had continued the contract awarded to a private firm by the Congress regime in 2002.

The CM charged that the JD(S) government had awarded coal transport contract to SICL, a company owned by party MP MAM Ramaswamy at 30 pc above market rate, causing losses to the exchequer to the tune of Rs 100 crore. The contract was awarded after the BJP withdrew support to the government in Oct 2007. He alleged that Revanna as KPTCL chairman, had sanctioned purchase of 505 transformers worth Rs 844 crore at 40 pc above the market rate. Transformers more than the requirement had been purchased resulting in a total loss of Rs 200 crore. The BJP-government had scrapped the coal washing and transport contract soon after coming to power. On the JD(S)’ allegations on his involvement in coal purchase, he said he was compelled to write to the KPCL to purchase six tonnes of coal from the MMTC and Bhatia company as the SICL had failed to transport coal as per the terms specified in the contract. The SICL had breached the contract and stopped transporting coal from Talcher in Orissa to Raichur plant resulting in severe shortage of coal stocks.

DH News Service