CBI has alleged in its FIR after rejection of Hindalco's plea in 2005, Birla wrote two letters and held a “personal meeting” with the then Coal Secretary P C Parakh, after which a decision was reversed and Hindalco was given the block which was earlier meant for two Public Sector Undertakings—Mahanadi Coal Fields and Neyveli Lignite.
“Pursuant to these letters and personal meeting between Parakh and Birla, Parakh, by abusing his official position as a public servant, recommended the allocation of Talabira II along with Talabira III coal block to Hindalco Industries Limited, along with other two companies without any valid basis or change in circumstances and with the sole intention to show undue favours to Hindalco Industries Limited,” the agency alleged in its FIR.
The allegations have been denied by Hindalco and Parakh. The former Coal Secretary has said if he was a conspirator, so was Prime Minister as he had signed the allocation letter to Hindalco.
