Coal block allocation audit
Also called: Coalgate · Topic: Constitutional Bodies: UPSC, CAG, Finance Commission and Others · NCERT: Beyond NCERT
Meaning
The coal block allocation audit, popularly called "Coalgate", was the CAG's 2012 report on coal blocks given to private firms without bidding. It estimated a windfall gain of about ₹1.86 lakh crore to these firms. A windfall gain is a large profit received without having earned it. The report led to court action and a change in how coal is allotted.
Example
In Manohar Lal Sharma v. Principal Secretary (August–September 2014), the Supreme Court held that allocations made since 1993 were illegal and cancelled 214 of 218. The Coal Mines (Special Provisions) Act 2015 then brought in auctions. Some convictions followed, including that of a former Coal Secretary.
Don't confuse with
- 2G spectrum audit: this was the CAG's 2010 report on telecom licences, estimating a presumptive loss of up to ₹1.76 lakh crore. In 2012 the Supreme Court cancelled 122 licences.