MMTC Coal Import Scam: Court Dismisses FIR Plea

New Delhi, May 16 (PTI) A special court has dismissed a plea by the Metals and Minerals Trading Corporation of India (MMTC) seeking the registration of an FIR by the CBI in connection with alleged corruption in the import of coal from an Australian company at inflated rates in 2009, officials said Thursday.

The PSU had sought directions to the CBI to register an FIR in matter which is now being investigated by the central probe agency by registering a preliminary enquiry.

A preliminary enquiry is the first step by the agency to ascertain if there is prima facie enough material in the allegations to warrant a full-fledged investigation through an FIR or a regular case, they said.

The plea was dismissed by the special court which said it does not have power to direct the CBI to register an FIR and investigate the case.

Citing orders of the Supreme Court and high courts, the special court said the powers to issue directions to the CBI to register an FIR lie with the Supreme Court and high courts only.

The public sector undertaking had approached the special court with a plea it had submitted two complaints with the CBI -- September 2, 2022 dated November 23, 2022 -- seeking the registration of the FIR in the matter as the complaints were disclosing the commission of the cognisable offences, but no action was taken by CBI.

The central probe agency had registered a preliminary enquiry last year.

The case pertains to a long-term agreement signed between MMTC and Anglo American Metallurgical Coal Pty. Ltd on March 7, 2007 for the purchase of freshly-mined and washed cooking coal.

It is alleged MMTC officials proposed and sanctioned USD 300 per metric tonne rate for the fifth delivery period between July 01, 2008 to July 30, 2009 despite being fully aware that the price of cooking coal had drastically fallen in the wake of Lehman Brothers collapse, and purchasing coal at USD 300 PMT would cause a huge loss, they said.

The complaint said that on November 20, 2008, the prices of coal were low and the Sale Purchase Committee of Directors should have satisfied itself for agreeing to a price of coal at USD 300 PMT as opposed to price which was USD 96.40 PMT for the previous delivery period.

"It is alleged that the facts of the case constituted a clear case of conspiracy i.e. official of the complainant with the official of the Anglo Coal in order to gain pecuniary advantage to Anglo Coal by abusing their positions and to defraud the exchequer of this country," the MMTC told the court.