Pranav B Prem

A Delhi Court has discharged former Coal Secretary Harish Chandra Gupta and four others in the case concerning the allocation of the Fatehpur East Coal Block, observing that there was no evidence to show that their acts were against public interest or involved any dishonest intention. Special Judge Dheeraj Mor of the Rouse Avenue Courts, in a detailed 102-page order, held that the recommendation of the Screening Committee for allocation of the coal block to R.K.M. Powergen Pvt. Ltd. (RKMPPL) was made in public interest, and that the material on record did not satisfy the essential ingredients of criminal misconduct under the Prevention of Corruption Act, 1988 (PC Act).

Also Read: Lokpal Dismisses Complaint Alleging Gender Segregation in Sathyabama University, Says Matter Beyond Its Jurisdiction

The case originated from a CBI investigation alleging criminal conspiracy, cheating, and corruption in the allocation of the Fatehpur East Coal Block in Chhattisgarh. The FIR was registered against R.K.M. Powergen Pvt. Ltd., its directors, and officials from the Ministry of Coal, alleging that they had bypassed eligibility norms and submitted forged consent letters for land acquisition to secure allocation of the coal block. The CBI further claimed that the Detailed Project Report (DPR) attached with the company’s application falsely represented the project’s capacity and stage of preparation, and that the company issued shares at a high premium favoring its Indian promoter after the allocation.

Initially, the CBI filed a closure report, stating that no substantive evidence was found to support the allegations. However, after further investigation, the agency filed a chargesheet against R.K.M. Powergen Pvt. Ltd., its directors, and certain officials of the Ministry of Coal, including then Secretary H.C. Gupta and then Joint Secretary Kuljeet Singh Kropha, for offences under Sections 120B, 420, 467, 468, and 471 IPC, along with Section 13(1)(d) of the PC Act.

In its findings, the Court noted that the Screening Committee had recommended RKMPPL’s proposal after considering all relevant factors, including project preparedness and financial capacity. It observed that the Committee’s decision was made in good faith and in furtherance of public interest. “There is not even an iota of material available on record to suggest that the act of accused public servants was without public interest. Hence, the essential ingredient of the offence punishable under Section 13(1)(d)(iii) of the PC Act is conspicuously missing,” the Court stated.

The judge emphasized that the allocation process was based on comparative merit and that RKMPPL’s proposal was among the most suitable. There was no evidence to show that the accused officials acted dishonestly, conspired, or derived any personal benefit from the allocation. The Court further held that there was no reason to prima facie presume that RKMPPL or its directors made any false claims in their application or supporting documents submitted to the Ministry of Coal, the Ministry of Power, or the Government of Chhattisgarh. “The allegations of the prosecution that the accused company gave misleading information or claimed false facts qua the aspect of finance are unfounded. Rather, the said claim is established to be genuine and correct, which has been buttressed by the subsequent conduct of the accused company,” the Court observed.

The Court also found that the alleged forged consent letters for land acquisition and inconsistencies in the Detailed Project Report were not supported by evidence. It noted that the prosecution failed to present any material to show that the accused officials manipulated or misrepresented data in the Screening Committee’s recommendation. The order recorded that the acts of the accused officials were consistent with due procedure and carried out in the course of their official duties.

Finding no prima facie case against any of the accused, the Court discharged Harish Chandra Gupta, former Secretary of the Ministry of Coal, Kuljeet Singh Kropha, former Joint Secretary, as well as R.K.M. Powergen Pvt. Ltd., and its Managing Director and Director. The Court concluded that their actions were in accordance with the established procedures and were made in the interest of the government, not for any personal or extraneous gain.

Also Read: CLAT 2026: Last date for registration extended to Nov 7

The Rouse Avenue Court thus discharged all the accused in the Fatehpur East Coal Block allocation case, holding that their actions were within the scope of official duties and carried out in public interest. “The essential element of criminal misconduct under Section 13(1)(d)(iii) of the Prevention of Corruption Act is absent,” the Court held, thereby bringing closure to yet another long-standing case arising from the coal block allocation investigations.

Cause Title: CBI v/s M/s R.K.M. Powergen Pvt. Ltd and others

Case No: CBI Case No. CBI/92/2023 

Coram: Dheeraj Mor (Special Judge)