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Coalgate: How India’s Coal Allocation Controversy Changed the Rules

📅 Last updated: 12 November 2026⏱ 40 dated entries✎ By Nazish Fatima

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In short

Explore the Coalgate timeline, CAG's ₹1.86 lakh crore estimate, Supreme Court's 2014 coal-block cancellations, CBI investigations, trials and impact.

Latest Story

Between 1993 and 2011 the Union government handed out more than 200 coal blocks to companies without auctions. In 2012 the Comptroller and Auditor General estimated that private allottees stood to gain about ₹1.86 lakh crore. In 2014 the Supreme Court declared the allocations arbitrary and illegal and cancelled 214 of them. This timeline of the coal allocation scam, popularly called Coalgate, follows the audit, the court rulings, the move to auctions and the criminal trials that are still running in 2026, including the closure of the case against former Prime Minister Manmohan Singh in July 2026.

Latest, as of 12 November 2026

29 July 2026: the Supreme Court accepted the CBI’s closure reports in the Talabira II case and set aside the 2015 order summoning Manmohan Singh. July 2026: it allowed appeals against coal-case convictions and acquittals in the Delhi High Court. 19 August 2026: it told the High Court not to stay trials and to decide appeals within about four weeks. Jump to the latest entries.

💡 Short Answer

Coalgate is the controversy over coal blocks allotted without auctions from 1993 to 2011. The CAG estimated ₹1.86 lakh crore in potential gains to private allottees in 2012, an audit estimate rather than a proven loss. On 25 August 2014 the Supreme Court held the allocations arbitrary and illegal and later cancelled 214 of 218. Criminal cases are decided block by block: some ended in convictions, others in acquittals.

⚡ Coalgate at a Glance
Period examinedAllocations 1993–2011
CAG reportTabled 17 Aug 2012; ₹1.86 lakh crore estimated gain
Supreme CourtIllegal: 25 Aug 2014; 214 of 218 cancelled: 24 Sep 2014
Levy₹295 per tonne on coal already mined
New lawCoal Mines (Special Provisions) Act, 30 Mar 2015
Criminal cases57 CBI cases; convictions, acquittals, trials pending
⚡ Quick Answers — AI Overview Ready

Coal Allocation Scam: Key Questions

What was wrong with the coal allocations?
Blocks were given out by a Screening Committee and by direct government decision, without auctions. The Supreme Court found no consistent, objective or transparent method and no comparison of applicants, and declared every such allocation since 1993 illegal.
Was ₹1.86 lakh crore lost?
Not in any proven sense. It was the CAG’s estimate of potential gains to private allottees, based on about ₹295 a tonne. No court has found that amount stolen or ordered it repaid, and the government disputed the method.
What happened to Manmohan Singh?
A special court summoned him in March 2015 in the Talabira II case; the Supreme Court stayed it in April 2015. On 29 July 2026, after his death, it accepted the CBI’s closure reports and set the summons aside. He was never charged or convicted.
What changed after Coalgate?
The Coal Mines (Special Provisions) Act, 2015 replaced discretionary allocation with e-auctions for private companies and rule-based allotment to government companies, with proceeds going to the coal-bearing states.
📚 Key Takeaways

Coalgate in Ten Points

  • The system: captive coal blocks were allotted from 1993 without auctions.
  • The delay: competitive bidding was proposed in June 2004 but never introduced before 2014.
  • The audit: the CAG’s August 2012 report estimated ₹1.86 lakh crore in gains to private allottees.
  • Not a theft figure: the estimate measured potential gain, not money proved stolen.
  • The CBI row: the agency admitted sharing its draft report with the Law Minister, who resigned in May 2013.
  • The ruling: on 25 August 2014 the Supreme Court declared the allocations arbitrary and illegal.
  • The cancellation: 214 of 218 allocations went on 24 September 2014, with a ₹295-a-tonne levy.
  • The new law: auctions under the Coal Mines (Special Provisions) Act, 2015.
  • The trials: Madhu Koda, H.C. Gupta, Dilip Ray and Vijay Darda were convicted in specific cases; others were acquitted.
  • 2026: the case against Manmohan Singh was closed, and appeals were opened to the Delhi High Court.

The ₹1.86 Lakh Crore Figure: An Estimate, Not a Proven Loss

The single most misquoted number in the story.

The CAG’s Rs 1.86 lakh crore figure explained: it is an estimate of financial gain to private allottees, based on about Rs 295 a tonne (Coal India’s 2010-11 average price minus average cost), applied to open-cast and mixed private blocks. It is not money proved stolen, not a loss found by a criminal court, not an amount any court ordered repaid, and was disputed by the government
The CAG estimate in context. Sources: CAG Report No. 7 of 2012–13; Supreme Court order of 24 September 2014.

The CAG’s Report No. 7 of 2012–13, tabled on 17 August 2012, worked out a per-tonne gain: Coal India’s average sale price in 2010–11 minus the average cost of production, which came to about ₹295 a tonne. Applied to the extractable reserves of open-cast and mixed blocks held by private companies, that gave roughly ₹1.86 lakh crore. The report said only part of that gain could have reached the exchequer even if blocks had been auctioned.

A draft version leaked in March 2012 had put the figure at about ₹10.67 lakh crore on a far wider basis, which is one reason the final number was attacked from both sides. The government contested the method; the CAG stood by it. What matters for readers is that three questions were answered by three different bodies: the CAG estimated the cost of the policy, the Supreme Court judged whether the process was lawful, and the special courts decide, one block at a time, whether anyone committed a crime.

The 2026 Rulings: Where Coalgate Stands Now

Three Supreme Court orders in five weeks changed the shape of the remaining cases.

Supreme Court orders of July and August 2026: 21 July interim stay of cognisance against P.C. Parakh, Naveen Jindal and JSPL in the Gare Palma IV/1 case; 29 July Manmohan Singh case closed, CBI closure reports accepted and 2015 summons set aside; July appeals against convictions and acquittals allowed in the Delhi High Court; 19 August High Court told not to stay trials and to decide appeals within four weeks
The 2026 orders. Sources: LiveLaw; The New Indian Express; Verdictum.

On 29 July 2026 a bench of Chief Justice Surya Kant and Justices Joymalya Bagchi and V. Mohana set aside the special court’s March 2015 order that had taken cognisance against Manmohan Singh, Kumar Mangalam Birla, P.C. Parakh and three others in the Talabira II case. The bench said it had examined both CBI closure reports and found no compelling reason for the trial court to reject them. Singh had died on 26 December 2024; his appeal was decided on its merits.

The same month, the court relaxed the arrangement it had imposed in 2014, under which challenges to the special court’s orders could only be brought to the Supreme Court. Appeals against convictions and acquittals can now be heard by the Delhi High Court. On 19 August 2026 the bench added that the High Court must not stay coal-case trials and should decide pending appeals preferably within four weeks, noting it had expressed no view on the merits of any case.

Timeline: The Coal Allocation Scam, 1992 to 2026

Newest first. Colour shows the type of event.

Audit & ParliamentInvestigation & politicsPolicy & auctionsSupreme CourtTrial verdicts

Where things stand Supreme Court

Status as of 12 November 2026Cases decided one coal block at a time

The allocations: Settled. The Supreme Court’s 2014 finding that the Screening Committee and government-dispensation routes were arbitrary and illegal stands, and coal mines are now allotted under the Coal Mines (Special Provisions) Act, 2015.

The criminal cases: Still open. The CBI filed 57 coal-block cases, and the Enforcement Directorate brought money-laundering cases on top. Some ended in convictions, others in acquittals or discharges, and several are at trial or on appeal before the Delhi High Court.

There is no single “Coalgate verdict”. Each accused’s position depends on the block and the court order in their own case.
19 Aug 2026

Supreme Court: no stays on trials, decide appeals in four weeks Supreme Court

Bench: CJI Surya Kant, Justices Joymalya Bagchi and V. MohanaOrder on the coal-block cases

What happened: Told that some accused had gone to the Delhi High Court and others to the Supreme Court, the bench directed that the High Court grant no interim stay of coal-scam trials and decide pending appeals and petitions preferably within four weeks.

Why it matters: It keeps the trials moving after the court opened the High Court route a month earlier, while giving the accused a quick hearing.

The court said it had expressed no opinion on the merits of any case.
29 Jul 2026

Supreme Court closes the case against Manmohan Singh Supreme Court

Talabira II coal block, OdishaBench: CJI Surya Kant, Justices Bagchi and Mohana

What happened: The court accepted the CBI’s closure reports in the Talabira II case and set aside the special court’s March 2015 order that had summoned former Prime Minister Manmohan Singh and five others. It found no compelling reason for the trial court to have rejected the closure reports and taken cognisance.

The context: Singh had challenged the summons in 2015 and the Supreme Court stayed it on 1 April 2015. He died on 26 December 2024; the court decided the appeal he had filed in his lifetime.

This closed the Talabira II proceedings against Singh. It was not a ruling on other blocks or other accused in the wider Coalgate cases.

Appeals against verdicts can go to the Delhi High Court Supreme Court

Supreme Court modifies its 2014–2017 ordersExact order date not reported

What changed: Since 2014 the Supreme Court had routed challenges to the special coal court’s orders only to itself, to stop the trials being stalled. In July 2026 it allowed both the prosecution and the accused to appeal convictions and acquittals in the Delhi High Court.

What did not: Challenges to orders on framing of charges, quashing and bail still have to be filed in the Supreme Court, according to reports of the modified order.

The restriction had lasted almost 12 years.
21 Jul 2026

Supreme Court stays cognisance against P.C. Parakh, Naveen Jindal Supreme Court

Gare Palma IV/1 coal block, ChhattisgarhSpecial leave petition by P.C. Parakh

What happened: The court granted an ad-interim stay of a special judge’s 1 June 2026 order taking cognisance against former Coal Secretary P.C. Parakh, Jindal Steel & Power, its chairman Naveen Jindal and others.

Status: Interim only. The stay continues until further orders; no finding of guilt or innocence has been made.

This is a separate case from the 2013 FIR involving Jindal and Dasari Narayana Rao.
27 May 2026

SKS Ispat and four others acquitted Trial verdicts

Vijay Central coal block, ChhattisgarhSpecial Judge Sunena Sharma

The verdict: The court acquitted SKS Ispat & Power Ltd and four individuals of cheating and criminal conspiracy, holding that suspicion could not take the place of proof beyond reasonable doubt.

Who was cleared: They included the company’s managing director Anil Gupta and designated director Sudhir Kumar Sahay. Sahay is the brother of former Union minister Subodh Kant Sahay, who was not an accused.

The CBI can still appeal the acquittal.
27 Mar 2026

Bander case: all accused acquitted Trial verdicts

Bander coal block, MaharashtraSpecial Judge Sunena Sharma, Rouse Avenue Courts

The verdict: The court acquitted former Rajya Sabha MP Vijay Darda, his son Devendra Darda, Manoj Kumar Jayaswal, AMR Iron & Steel and former Coal Secretary H.C. Gupta, finding “no iota of evidence” of criminality or undue influence in the allocation.

Why it matters: It was the oldest pending coal-block case, registered in 2012. Gupta, whom the court had summoned despite a CBI closure report, was described as honourably acquitted.

A separate Enforcement Directorate money-laundering complaint in the same matter was later dropped.
12 Jan 2026

New special judge for the coal cases Supreme Court

Supreme Court orderBench: CJI Surya Kant, Justice Joymalya Bagchi

What happened: On the Delhi High Court’s request, the Supreme Court appointed Delhi Higher Judicial Service officer Sunena Sharma as special judge for the coal-block cases, replacing Sanjay Bansal, who had heard them for about four and a half years.

The set-up: She shares the remaining trials with Special Judge Dheeraj Mor. The court’s order spells her name “Sunaina”.

Only the Supreme Court can appoint or change the special judges in these cases, under its 2014 order.
31 Oct 2025

Former Coal Secretary H.C. Gupta discharged in Fatehpur East case Trial verdicts

Fatehpur East coal block, ChhattisgarhSpecial Judge Dheeraj Mor; reported 3–4 November

The order: The court discharged H.C. Gupta, former Joint Secretary K.S. Kropha, RKM Powergen and two of its directors, holding there was not “an iota of material” that the officials acted against the public interest when the Screening Committee recommended the company.

The pattern: It was the fourth recent case in which Gupta and Kropha secured relief. Gupta also has convictions in other blocks, under appeal.

A discharge means the court found too little evidence to frame charges in that case. It is not a ruling that the allocation system was sound.

A second special judge for the coal trials Supreme Court

Supreme Court orderDelhi courts at Rouse Avenue

What happened: The Supreme Court designated Dheeraj Mor as a special judge for the coal-block cases, alongside Sanjay Bansal, whose tenure it extended, to speed up the remaining trials.

The first special judge, Bharat Parashar, was appointed in July 2014 and delivered the early convictions.
26 Dec 2024

Manmohan Singh dies Investigation & politics

New Delhi, aged 92Talabira II appeal still pending

What happened: The former Prime Minister died with his 2015 challenge to the special court’s summons still before the Supreme Court, which had stayed the summons since April 2015.

The Supreme Court decided the appeal on its merits in July 2026.
11 Dec 2024

Odisha blocks case: officials and company acquitted Trial verdicts

Rampia, Dip Side of Rampia and Mandakini blocksSpecial Judge Sanjay Bansal

The verdict: The court acquitted H.C. Gupta, K.S. Kropha, K.C. Samria, Navabharat Power and its promoters, holding that the CBI had not proved any misrepresentation about the company’s net worth or land holdings.

A distinction: The court said the officials might be administratively liable, but were not criminally liable.

The line between a bad process and a crime runs through all the Coalgate trials.
26 Jul 2023

Vijay Darda and son sentenced to four years Trial verdicts

Fatehpur East coal block, ChhattisgarhConvicted on 13 July 2023

The verdict: Former Rajya Sabha MP Vijay Darda, his son Devendra Darda and Manoj Kumar Jayaswal of JLD Yavatmal Energy were sentenced to four years for cheating and conspiracy. H.C. Gupta, K.S. Kropha and K.C. Samria received three years.

The finding: The court held that the company had misrepresented facts to secure the block. JLD Yavatmal was fined Rs 50 lakh.

It was reported as the 13th conviction in the coal-block cases. The convicts appealed to the Delhi High Court.
26 Oct 2020

Dilip Ray sentenced to three years Trial verdicts

Brahmadiha coal block, Giridih, JharkhandConvicted on 6 October 2020

The verdict: Special Judge Bharat Parashar sentenced former Minister of State for Coal Dilip Ray, who served in the Vajpayee government, and two former Coal Ministry officials to three years for conspiracy and other offences over the 1999 allocation to Castron Technologies.

Next day: On 27 October 2020 the Delhi High Court suspended the sentence and granted bail pending appeal. It did not stay the conviction.

The CBI had sought life imprisonment. This case dates from 1999, before the UPA government.
5 Dec 2018

Former Coal Secretary H.C. Gupta jailed for three years Trial verdicts

Moira and Madhujore blocks, West BengalConvicted on 30 November 2018

The verdict: Gupta, K.S. Kropha and K.C. Samria were sentenced to three years in the case involving Vikash Metals and Power. The company’s managing director received four years.

Gupta chaired the Screening Committee from 2006 to 2008, which is why he is an accused in so many of the cases.
16 Dec 2017

Madhu Koda sentenced to three years Trial verdicts

Rajhara North coal block, JharkhandConvicted on 13 December 2017

The verdict: Former Jharkhand Chief Minister Madhu Koda, his aide Vijay Joshi, former Coal Secretary H.C. Gupta and former Jharkhand Chief Secretary A.K. Basu were sentenced to three years over the allocation to Vini Iron and Steel Udyog. Koda was fined Rs 25 lakh.

Afterwards: The Delhi High Court refused to stay Koda’s conviction, and the Supreme Court declined to interfere, which kept him out of elections.

The court found criminal wrongdoing in this block only. It did not rule on the wider allocation programme.

First conviction of public servants Trial verdicts

Kamal Sponge Steel and Power caseSpecial Judge Bharat Parashar

The verdict: H.C. Gupta and two other former Coal Ministry officials became the first public servants convicted in a coal-block case, and were sentenced to two years. Gupta appealed.

Gupta had earlier told the court he could not afford a lawyer and wanted to face trial from jail.
28 Mar 2016

First conviction in the coal-block cases Trial verdicts

North Dhadu coal block, JharkhandSpecial Judge Bharat Parashar

The verdict: Jharkhand Ispat Pvt Ltd and its directors R.S. Rungta and R.C. Rungta were convicted of cheating and conspiracy. The Rungtas were later sentenced to four years.

Nineteen more CBI cases were then pending before the same court.

The first coal-mine auctions Policy & auctions

Tranche I: 14–22 February 2015Tranche II: 4–13 March 2015

What happened: The Coal Ministry e-auctioned cancelled blocks in two tranches. By the end of March 2015, 29 mines had been auctioned and the government projected large revenues for the coal-bearing states over the life of the mines.

The audit: The CAG later reviewed these auctions in its Report No. 20 of 2016.

Auction proceeds go to the states where the coal lies, not to the Centre.
30 Mar 2015

Coal Mines (Special Provisions) Act becomes law Policy & auctions

Act No. 11 of 2015Deemed in force from 21 October 2014

What happened: Parliament replaced the two ordinances with an Act, which received the President’s assent on 30 March 2015. It provides for allocating the cancelled mines by auction or by allotment to government companies.

The schedule: Schedule I lists the 204 coal mines covered by the Supreme Court’s cancellation, in the government’s block-wise count.

The Act, not a January 2015 law as some summaries say, is the legal basis of today’s coal auctions.
1 Apr 2015

Supreme Court stays the summons to Manmohan Singh Supreme Court

Talabira II caseNotice issued to the CBI

What happened: On petitions by Singh and the other accused, the Supreme Court stayed the trial court’s summons and the proceedings against them. The stay lasted more than 11 years.

The case was finally closed on 29 July 2026.
11 Mar 2015

Special court summons a former Prime Minister Investigation & politics

Talabira II coal block, OdishaSpecial Judge Bharat Parashar

What happened: Rejecting the CBI’s closure report, the court summoned Manmohan Singh, who held the Coal portfolio in 2005, Kumar Mangalam Birla, P.C. Parakh, Hindalco and two of its officials as accused over the allocation of Talabira II.

Status: A summons is a decision that there is enough to proceed, not a finding of guilt.

Singh issued a statement saying he was sure the truth would prevail.
21 Oct 2014

Ordinance to re-allot the cancelled blocks Policy & auctions

Coal Mines (Special Provisions) Ordinance, 2014Re-promulgated 26 December 2014

What happened: The government issued an ordinance to take over the cancelled blocks and allocate them afresh by auction and allotment, and re-promulgated it on 26 December after the Bill did not pass in the winter session.

The ordinance route let auctions start before Parliament had passed a law.
24 Sep 2014

Supreme Court cancels 214 of 218 allocations Supreme Court

Order on consequencesAdditional levy of Rs 295 per tonne

The order: The court cancelled all allocations examined except four: two Ultra Mega Power Project blocks of Sasan Power, NTPC’s Pakri Barwadih and SAIL’s Tasra. In the government’s block-wise count, 204 of 218 blocks were cancelled.

The levy: For 42 producing or nearly producing blocks, cancellation took effect from 31 March 2015. All allottees that had mined coal had to pay an additional levy of Rs 295 per tonne, a figure taken from the CAG report.

The 214 and 204 figures count the same cancellation differently: allocations versus blocks.
25 Aug 2014

Supreme Court: allocations arbitrary and illegal Supreme Court

Manohar Lal Sharma v. Principal SecretaryBench led by CJI R.M. Lodha

The holding: Every allocation since 1993 through the Screening Committee and the government-dispensation route was declared arbitrary and illegal. The Screening Committee had not followed any consistent, objective or transparent method and had not compared applicants.

What it did not decide: The court did not hold any allottee or official criminally guilty. Criminality was left to the CBI investigations and the special court.

The judgment covered 36 Screening Committee meetings held between 1993 and 2008.

A special court for the coal cases Supreme Court

Supreme Court orderSpecial Judge Bharat Parashar

What happened: The Supreme Court designated a special judge in Delhi to try all coal-block cases and barred other courts from staying the investigations or trials.

It also appointed senior advocate R.S. Cheema as special public prosecutor.

FIR names Kumar Mangalam Birla and P.C. Parakh Investigation & politics

Talabira II and III, OdishaThe CBI’s 14th coal FIR

The allegation: The CBI alleged that Parakh, then Coal Secretary, changed an earlier decision to give Talabira II to Neyveli Lignite and allowed Hindalco to share the block in 2005. Reports date the FIR to 14 or 15 October 2013.

The response: Parakh said that if there was a conspiracy, the Prime Minister, who approved the decision, would also be part of it. The Prime Minister’s Office defended the decision as made on merits.

The CBI later filed closure reports in this case, which the trial court rejected in March 2015.
11 Jun 2013

FIR against Naveen Jindal and Dasari Narayana Rao Investigation & politics

Amarkonda Murgadangal block, JharkhandCBI case

The allegation: The CBI registered a case alleging irregularities in an allocation to Jindal Steel & Power and Gagan Sponge. Congress MP Naveen Jindal and former Minister of State for Coal Dasari Narayana Rao were named.

An FIR records allegations to be investigated. It is not a finding of guilt.
10 May 2013

Law Minister Ashwani Kumar resigns Investigation & politics

After the CBI’s second affidavitRailway Minister Pawan Bansal quit the same day over a separate case

What happened: A second CBI affidavit on 6 May said changes had been made to the draft status report after meetings with the Law Minister and officials of the PMO and the Coal Ministry. Kumar resigned on the night of 10 May.

The Supreme Court had described the CBI as a “caged parrot” on 8 May.
26 Apr 2013

CBI admits sharing its report with the government Investigation & politics

Affidavit by CBI Director Ranjit SinhaOrdered by the court on 12 March

What happened: Sinha told the Supreme Court that the draft of the 8 March status report had been shared with Law Minister Ashwani Kumar, as he wished, and with officials of the PMO and the Coal Ministry.

Why it matters: The court had been told the report was not shared. The disclosure became a debate about the CBI’s independence.

The episode fed into later reforms on how the CBI director is appointed.
23 Apr 2013

Parliamentary committee calls allocations illegal Audit & Parliament

Standing Committee on Coal and Steel, 31st reportChair: Kalyan Banerjee

The finding: The committee said coal blocks had been allocated in an “unauthorised” and illegal manner between 1993 and 2010 and recommended cancelling blocks that had not started production.

A committee chaired by a UPA ally reached a conclusion close to the CAG’s.
14 Sep 2012

Supreme Court issues notice on the coal PIL Supreme Court

Writ Petition (Crl.) 120 of 2012Petitioner: advocate Manohar Lal Sharma

What happened: The court issued notice to the Union on a petition seeking to quash allocations since 1993 and asked the Coal Secretary to answer questions on how blocks were allotted. A Common Cause petition followed in November 2012.

Monitoring: From 2013 the court received CBI status reports and monitored the investigation.

This petition became the 2014 judgment.

CBI registers its first coal FIRs Investigation & politics

Preliminary enquiry since June 2012Early cases against private companies

What happened: After a preliminary enquiry on the CVC’s reference, the CBI registered its first FIRs against companies alleged to have misrepresented facts to obtain blocks, including AMR Iron & Steel over the Bander block.

The Bander case, among the first registered, ended in acquittals in March 2026.
17 Aug 2012

CAG report tabled: Rs 1.86 lakh crore estimate Audit & Parliament

Report No. 7 of 2012–13Performance audit, Ministry of Coal

What it said: The CAG estimated the financial gain to private allottees from 57 blocks at about Rs 1.86 lakh crore and criticised the delay in introducing competitive bidding, first proposed in 2004.

What it did not say: It did not say that the money had been stolen or that it was a proven loss to the exchequer. The government disputed the method.

The CAG said only part of the estimated gain could have gone to the exchequer, even with auctions.
31 May 2012

CVC refers the allegations to the CBI Investigation & politics

Complaints by BJP MPs Prakash Javadekar and Hansraj AhirCentral Vigilance Commission

What happened: The CVC asked the CBI to examine allegations that companies had obtained blocks by misrepresenting their eligibility.

Ahir had been raising coal allocations in letters and complaints for several years.

Draft CAG figure of Rs 10.67 lakh crore leaks Audit & Parliament

Draft audit reportReported 22 March 2012

What happened: A newspaper reported a draft CAG estimate of about Rs 10.67 lakh crore in windfall gains. The CAG said the figure was preliminary, and the final report of August 2012 used a much narrower basis.

The gap between the two figures is one reason the estimate was contested.

Advertisements and peak allocations Policy & auctions

Screening Committee meetings 1993–2008: 36Advertisements: September 2005 and 2006

What happened: With demand for coal rising, the Coal Ministry advertised blocks in September 2005 and again in 2006, when 38 blocks were put up and 15 reserved for power. The Screening Committee recommended large numbers of allottees in these years.

The flaw: The Supreme Court later found the committee had not recorded comparative evaluation of applicants or applied consistent criteria.

Manmohan Singh held the Coal portfolio for much of 2004–2009.

Competitive bidding first proposed Policy & auctions

Note by Coal Secretary P.C. ParakhOpposed by several states

What happened: The Coal Ministry proposed allocating blocks by competitive bidding. States raised objections, and departments debated whether the law had to be amended first.

What followed: Bidding was not introduced. Parliament amended the mining law in 2010, but no auction was held before the Supreme Court’s 2014 ruling.

This eight-year delay is the core of the CAG’s criticism.

Captive allocations to private companies begin Policy & auctions

Coal Mines (Nationalisation) Act amendedFor power, steel and cement

What happened: After the law was opened up to captive mining for specified end uses, the government began allotting blocks to private and public companies through the Screening Committee, without auctions.

The Supreme Court’s 2014 ruling went back to this first year.
14 Jul 1992

Screening Committee set up Policy & auctions

Ministry of Coal orderInter-ministerial, with state governments

What happened: The Coal Ministry constituted the Screening Committee to consider applications for captive coal blocks.

Its 36 meetings to 2008 were the main route the Supreme Court later struck down.

How Coal Blocks Were Handed Out

Twenty-two years from a screening committee to the first auction.

How coal blocks were allocated: July 1992 Screening Committee set up; 1993 captive allocations to private companies begin without auctions; June 2004 competitive bidding proposed but not introduced; 2005 to 2008 blocks advertised and allocations peak over 36 committee meetings; August 2012 CAG estimate; August and September 2014 Supreme Court declares allocations illegal and cancels 214; February and March 2015 first e-auctions of 29 mines
From discretion to auctions. Sources: Supreme Court judgment of 25 August 2014; CAG reports.

India nationalised coal mining in the early 1970s. In 1993 the law was amended to let companies mine coal for their own power, steel and cement plants, and the Screening Committee the Coal Ministry had set up on 14 July 1992 began recommending allottees. As demand rose, the ministry advertised blocks in September 2005 and again in 2006, when 38 blocks were put up. The Supreme Court later divided the committee’s 36 meetings to 2008 into four periods and found the same defects throughout: no recorded comparison of applicants and no consistent criteria.

The proposal to auction blocks, first mooted in June 2004 when P.C. Parakh was Coal Secretary, ran into objections from coal-bearing states and a debate over whether the law needed changing. Parliament amended the mining law in 2010, but no auction had taken place when the Supreme Court ruled in 2014. Manmohan Singh held the Coal portfolio for much of 2004–2009, which is why the controversy fell heavily on his government. The topic links to India’s wider coal and power story.

Why the Supreme Court Cancelled the Allocations

A judgment on process in August, an order on consequences in September.

Supreme Court 2014: 218 allocations examined; 214 cancelled on 24 September 2014, or 204 of 218 in the government’s block-wise count; 42 producing blocks given until 31 March 2015; levy of Rs 295 per tonne on coal already mined. Spared: two Sasan UMPP blocks, NTPC’s Pakri Barwadih and SAIL’s Tasra. The court found the process illegal, not anyone guilty of a crime
The 2014 judgment and order. Sources: Supreme Court; PIB, 1 December 2014.
IssueWhat the court found
TransparencyNo open, recorded process for choosing among applicants
ObjectivityNo consistent criteria applied across the 36 Screening Committee meetings
ComparisonApplicants were not evaluated against one another
Government dispensationAllocations to state companies for commercial use with private partners were not legally permissible
Natural resourcesPublic resources must be distributed fairly and in the public interest
Consequence214 of 218 allocations cancelled; ₹295 a tonne levy; 42 blocks given until 31 March 2015

Why do some sources say 204 blocks and others 214? The court’s order and most reporting counted 214 cancelled allocations out of 218. The government’s statement to Parliament of 1 December 2014 counted blocks, set aside 12 Ultra Mega Power Project blocks and said 204 of 218 blocks were cancelled; the 2015 Act lists 204 mines. Both describe the same order. Neither is a criminal finding: the court left criminality to the CBI and the special court.

Three Tracks: Audit, Constitution, Crime

Why an illegal process did not make every allottee a criminal.

Three separate tracks: audit (CAG 2012) estimated Rs 1.86 lakh crore of potential gain; constitutional (Supreme Court 2014) found the allocation process arbitrary and illegal and cancelled allocations; criminal law (special courts from 2016) asks whether a particular company or official cheated, conspired or abused office, which needs proof beyond reasonable doubt in each block
Audit, constitutional and criminal tracks. Sources: CAG; Supreme Court; special court verdicts.

Readers often treat the CAG figure, the 2014 judgment and the criminal verdicts as one story with one ending. They are not. An allocation can be unlawful as a matter of public law, because the process was arbitrary, without anyone having committed a crime in obtaining it. To convict, a special court needs evidence of something more specific: false statements about net worth or land, a quid pro quo, or an official dishonestly favouring an applicant. That explains why the same former Coal Secretary, H.C. Gupta, has been convicted in some blocks and acquitted or discharged in others.

Trial Outcomes: Convictions, Acquittals and Discharges

A selection of verdicts from the CBI’s 57 coal-block cases.

Selected coal-block verdicts. Convicted: 2016 Jharkhand Ispat (North Dhadu); 2017 Madhu Koda (Rajhara North); 2018 H.C. Gupta (Moira-Madhujore); 2020 Dilip Ray (Brahmadiha); 2023 Vijay Darda (Fatehpur East). Acquitted, discharged or closed: December 2024 Navabharat Power (Odisha blocks); October 2025 RKM Powergen (Fatehpur East, discharge); March 2026 Vijay Darda (Bander); May 2026 SKS Ispat (Vijay Central); July 2026 Manmohan Singh (Talabira II, closed)
Verdicts by block. Sources: LiveLaw; Scroll; The Tribune; The Indian Express.
DateBlockMain accusedOutcome
28 Mar 2016North Dhadu, JharkhandJharkhand Ispat; R.S. and R.C. RungtaConvicted (first coal-case verdict)
13–16 Dec 2017Rajhara North, JharkhandMadhu Koda, H.C. Gupta, A.K. BasuConvicted; 3 years
30 Nov – 5 Dec 2018Moira and Madhujore, West BengalH.C. Gupta, K.S. Kropha, K.C. SamriaConvicted; 3 years
6–26 Oct 2020Brahmadiha, JharkhandDilip RayConvicted; 3 years, suspended on appeal
13–26 Jul 2023Fatehpur East, ChhattisgarhVijay Darda, Devendra Darda, H.C. GuptaConvicted; 4 and 3 years
11 Dec 2024Rampia and Mandakini, OdishaNavabharat Power, H.C. GuptaAcquitted
31 Oct 2025Fatehpur East, ChhattisgarhRKM Powergen, H.C. Gupta, K.S. KrophaDischarged
27 Mar 2026Bander, MaharashtraVijay Darda, AMR Iron & Steel, H.C. GuptaAcquitted
27 May 2026Vijay Central, ChhattisgarhSKS Ispat & PowerAcquitted
29 Jul 2026Talabira II, OdishaManmohan Singh, K.M. Birla, P.C. ParakhSummons set aside; closure accepted

Fatehpur East appears twice because several companies shared the block: JLD Yavatmal Energy’s case ended in convictions in 2023, while RKM Powergen’s ended in a discharge in 2025. Convictions are not final while appeals are pending, and acquittals can be challenged by the CBI. For other long-running cases built on allegations of corruption, see our timelines of the Bofors case and the spectrum auctions that followed the 2G controversy.

The CBI Status-Report Row

How the investigation itself became a scandal in 2013.

From March 2013 the Supreme Court was reading CBI status reports on the coal investigation. On 26 April 2013 CBI Director Ranjit Sinha filed an affidavit admitting that the draft of the 8 March report had been shared with Law Minister Ashwani Kumar and officials of the Prime Minister’s Office and the Coal Ministry. A second affidavit on 6 May said changes had been made after those meetings. On 8 May the court called the CBI a “caged parrot”, and on 10 May Kumar resigned, on the same day as Railway Minister Pawan Bansal, who quit over an unrelated bribery case. The episode became a lasting reference point in debates over the agency’s independence.

Impact: What Coalgate Changed

Coal allocation before and after: 1993 to 2014 Screening Committee recommends and ministry decides, no consistent comparison of applicants, coal priced at royalty only, revenue gain mostly to allottees; from 2015 e-auctions for private companies, rule-based allotment to government companies, bid premium plus royalty, proceeds to coal-bearing states
How the rules changed. Sources: Coal Mines (Special Provisions) Act, 2015; CAG Report No. 20 of 2016.
  • Auctions became the rule: the 2015 Act replaced discretion with e-auctions and set allotment rules for government companies.
  • States gained revenue: auction proceeds flow to coal-bearing states such as Jharkhand, Odisha and Chhattisgarh.
  • A natural-resources precedent: the 2014 judgment, with the 2G ruling of 2012, shaped how courts view the distribution of scarce public resources.
  • Disruption for industry: power, steel and cement makers lost captive supply and had to bid again; some blocks took years to restart.
  • Investigative independence: the status-report affair intensified scrutiny of the CBI’s relationship with the government.
  • Political cost: Coalgate became, with 2G, a core part of the 2014 election campaign against the UPA government.
  • Slow justice: fourteen years after the CAG report, trials and appeals are still running.

Key People and Institutions

Person or bodyRole
Manmohan SinghPrime Minister; held the Coal portfolio for much of 2004–2009; summoned in 2015, case closed by the Supreme Court on 29 July 2026
P.C. ParakhCoal Secretary 2004–2005; proposed competitive bidding; named in the Talabira II and Gare Palma IV/1 cases
H.C. GuptaCoal Secretary 2005–2008 and Screening Committee chair; convicted in several cases, acquitted or discharged in others
Kumar Mangalam BirlaAditya Birla Group chairman; named in the Talabira II FIR; proceedings set aside in 2026
Naveen JindalJSPL chairman; named in CBI cases; cognisance in one case stayed in July 2026
Madhu KodaFormer Jharkhand Chief Minister; convicted in the Rajhara North case, 2017
Dilip RayMinister of State for Coal in 1999; convicted in the Brahmadiha case, 2020
Vijay DardaFormer Rajya Sabha MP; convicted in Fatehpur East (2023), acquitted in Bander (2026)
Ashwani KumarLaw Minister; resigned 10 May 2013 over the CBI status report
Ranjit SinhaCBI Director; his April 2013 affidavit disclosed the report-sharing
CAG (Vinod Rai)Audited allocations; estimated ₹1.86 lakh crore in gains (2012)
Supreme CourtDeclared allocations illegal (2014), cancelled them, set up and supervised the special court

Explore More Timelines

People Also Ask

What is the coal allocation scam?
The coal allocation scam, or Coalgate, is the controversy over how the Union government allotted coal blocks to companies between 1993 and 2011 without auctions. A 2012 CAG audit estimated Rs 1.86 lakh crore in gains to private allottees, and in 2014 the Supreme Court declared the allocations arbitrary and illegal and cancelled 214 of them.
Was Rs 1.86 lakh crore stolen in Coalgate?
No. Rs 1.86 lakh crore was the CAG's estimate of the financial gain that private allottees could make from undervalued coal, not money proved to have been stolen. No court has found that amount was lost or ordered it repaid. The government disputed the estimate's method.
Why did the Supreme Court cancel coal block allocations?
On 25 August 2014 it held that the Screening Committee had no consistent, objective or transparent method, did not compare applicants, and that the government-dispensation route was also illegal. On 24 September 2014 it cancelled 214 of the 218 allocations it examined and imposed a levy of Rs 295 per tonne.
Was Manmohan Singh found guilty in the coal scam?
No. A special court summoned him in March 2015 in the Talabira II case, but the Supreme Court stayed that order within weeks. On 29 July 2026 it accepted the CBI's closure reports and set the summons aside. He was never charged, tried or convicted.
Who has been convicted in the coal scam?
Convictions include Jharkhand Ispat and its directors (2016), former Jharkhand Chief Minister Madhu Koda (2017), former Coal Secretary H.C. Gupta in several cases, former minister Dilip Ray (2020), and former MP Vijay Darda in the Fatehpur East case (2023). Many convictions are under appeal.

Frequently Asked Questions

Based on the CAG report, Supreme Court records and reporting to 12 November 2026.

What is a coal block?
A coal block is a defined area containing coal reserves. Under the captive-mining policy, a company was given a block to mine coal for its own power, steel, cement or similar plant, not for open sale.
What does captive coal mining mean?
Captive mining means a company mines coal only for use in its own specified plant, such as a power station or steel mill. Captive allocations to private companies began in 1993 after the Coal Mines (Nationalisation) Act was amended.
What was the Screening Committee?
An inter-ministerial committee set up by the Ministry of Coal on 14 July 1992 to consider applications for captive coal blocks. It held 36 meetings until 2008. The Supreme Court found it had not followed a consistent, objective or transparent method.
What was the government-dispensation route?
Allocations made directly by the government, often to state public-sector companies that then partnered with private firms, rather than through the Screening Committee. The Supreme Court held this route illegal too in August 2014.
When did the CAG table its coal report?
On 17 August 2012. It was Report No. 7 of 2012-13, a performance audit of the allocation of coal blocks and augmentation of coal production by the Ministry of Coal.
Why was there a Rs 10.67 lakh crore figure?
That was a figure from a draft CAG report reported in March 2012. The final report tabled in August 2012 used a narrower basis and estimated about Rs 1.86 lakh crore. The CAG described the draft as preliminary.
How did the CAG calculate Rs 1.86 lakh crore?
It estimated the gain per tonne as the difference between Coal India's average sale price in 2010-11 and the average cost of production, about Rs 295 per tonne, and applied it to extractable reserves in open-cast and mixed blocks allotted to private companies.
What is the Rs 295 per tonne levy?
An additional levy the Supreme Court ordered on 24 September 2014 on coal already extracted by allottees whose allocations were cancelled. The figure came from the CAG's estimate of the gain per tonne.
How many coal blocks did the Supreme Court cancel?
The court cancelled 214 of the 218 allocations it examined, sparing only two Ultra Mega Power Project blocks, NTPC's Pakri Barwadih and SAIL's Tasra. The government's block-wise statement to Parliament put it as 204 of 218 blocks.
Why do some sources say 204 and others 214?
They count differently. Media reports and the court's order counted 214 cancelled allocations. The government's 1 December 2014 statement counted blocks, treating the 12 Ultra Mega Power Project blocks separately, and said 204 coal blocks were cancelled. The 2015 Act's Schedule I lists 204 mines.
Which blocks escaped cancellation?
Four allocations: the Moher and Moher-Amroli Extension blocks of Reliance Power's Sasan Ultra Mega Power Project, NTPC's Pakri Barwadih block and SAIL's Tasra block.
What happened to producing coal blocks after the verdict?
For 42 blocks that were producing or about to produce, the Supreme Court delayed cancellation to 31 March 2015, giving the government time to re-allot them without stopping supply to power and steel plants.
Who was the judge in the coal scam cases?
The first special judge, designated in July 2014, was Bharat Parashar, who delivered the early convictions. Later judges included Arun Bhardwaj, Sanjay Bansal and Dheeraj Mor. Since 12 January 2026, Sunena Sharma and Dheeraj Mor hear the remaining trials.
How many coal scam cases did the CBI register?
The CBI filed 57 cases in the coal-block allocation matters, according to reports of the Supreme Court's August 2026 hearing. The Enforcement Directorate brought separate money-laundering cases based on several of them.
What did the Parliamentary committee say about Coalgate?
The Standing Committee on Coal and Steel, chaired by Kalyan Banerjee, reported on 23 April 2013 that allocations between 1993 and 2010 were unauthorised and illegal, and recommended cancelling blocks that had not started production.
Why did Law Minister Ashwani Kumar resign?
After the CBI told the Supreme Court in affidavits of 26 April and 6 May 2013 that its draft status report on the coal investigation had been shared with him and changed after meetings with him and officials. He resigned on 10 May 2013.
What was the 'caged parrot' remark?
On 8 May 2013, during the coal-probe hearings, the Supreme Court described the CBI as a 'caged parrot speaking in its master's voice', criticising the government's access to the agency's status report.
What is the Talabira II case?
A CBI case over the 2005 allocation of the Talabira II block in Odisha to Hindalco, which shared it with Neyveli Lignite. Kumar Mangalam Birla and former Coal Secretary P.C. Parakh were named. The CBI filed closure reports; the trial court rejected them in 2015, and the Supreme Court accepted them in July 2026.
Was Kumar Mangalam Birla convicted?
No. He was named in the 2013 FIR and summoned in March 2015, but the Supreme Court stayed the summons in April 2015 and on 29 July 2026 accepted the CBI's closure reports in the Talabira II case, setting aside the summoning order against all six accused.
What happened to Naveen Jindal in the coal scam?
He was named in a June 2013 CBI case about the Amarkonda Murgadangal block and is an accused in other coal-block cases. On 21 July 2026 the Supreme Court stayed a special court's June 2026 order taking cognisance against him, P.C. Parakh and JSPL in the Gare Palma IV/1 case.
Why was Madhu Koda convicted?
A special CBI court held that the Rajhara North block in Jharkhand was allotted to Vini Iron and Steel Udyog through a criminal conspiracy involving Koda, his aide, H.C. Gupta and the state's then Chief Secretary. He was sentenced to three years on 16 December 2017.
What was Dilip Ray convicted for?
For conspiracy and other offences in the 1999 allocation of the Brahmadiha block in Giridih, Jharkhand, to Castron Technologies, when he was Minister of State for Coal. He was convicted on 6 October 2020 and sentenced to three years on 26 October; the Delhi High Court suspended the sentence the next day.
Was H.C. Gupta convicted?
Yes, in several cases, including Kamal Sponge (2017), Rajhara North with Madhu Koda (2017), Vikash Metals (2018) and Fatehpur East with JLD Yavatmal (2023). He has also been acquitted or discharged in others, including the Odisha blocks (2024), Fatehpur East-RKM Powergen (2025) and Bander (2026).
Why are so many coal scam cases ending in acquittals?
Proving a crime requires evidence of dishonest intent, cheating or abuse of office in a particular allocation. Courts have repeatedly found that a flawed, discretionary process, though illegal, did not by itself prove that a given official or company committed an offence.
What is the difference between a discharge and an acquittal?
A discharge comes before trial, when the court finds too little material to frame charges. An acquittal comes after trial, when the prosecution fails to prove guilt beyond reasonable doubt. Neither is a ruling that the allocation system was lawful.
What did the Coal Mines (Special Provisions) Act, 2015 do?
It provided for taking back the cancelled coal mines and allocating them afresh through auction to private companies or allotment to government companies. It received assent on 30 March 2015 and replaced ordinances of October and December 2014.
When were the first coal mine auctions held?
Tranche I ran from 14 to 22 February 2015 and Tranche II from 4 to 13 March 2015. By the end of March 2015, 29 mines had been auctioned. The CAG reviewed them in Report No. 20 of 2016.
Who gets the money from coal mine auctions?
The coal-bearing state governments. Under the 2015 framework, auction proceeds and royalties flow to the states where the mines are located, not to the Union government.
Can coal scam convictions be appealed to the High Court?
Yes, since July 2026. The Supreme Court had routed all challenges to itself since 2014, but it then allowed appeals against convictions and acquittals in the Delhi High Court. On 19 August 2026 it told the High Court not to stay trials and to decide appeals preferably within four weeks.
Did the Supreme Court say all coal allottees were criminals?
No. The 2014 judgment declared the allocation process arbitrary and illegal and cancelled the allocations. It did not find any company or official guilty of a crime. Criminal liability is being decided case by case by the special courts.
Which government was in power during Coalgate?
Allocations spanned several governments from 1993, including the Vajpayee government, but most were made between 2004 and 2009 under the UPA, when Prime Minister Manmohan Singh held the Coal portfolio for long stretches. The controversy erupted under UPA-2 in 2012.
How did Coalgate affect the 2014 election?
With the 2G spectrum case and the Commonwealth Games controversy, Coalgate became a central part of the BJP's corruption campaign against the UPA government in the 2014 Lok Sabha election, which the UPA lost.
Is the Coalgate case closed?
No. The allocation question is settled, and the case against Manmohan Singh is closed. But several criminal trials and appeals are still pending in Delhi, including those affected by the Supreme Court's July and August 2026 orders.

⚠️ Editorial Note

This timeline separates audit observations, political allegations, investigative steps and judicial findings. The CAG’s ₹1.86 lakh crore is described as an estimate of potential gains, not proven theft. The Supreme Court’s finding on the allocation process is kept apart from criminal verdicts in individual cases; being named in an FIR or summoned is not a finding of guilt. We corrected several points found in earlier summaries: the court cancelled 214 of 218 allocations (204 blocks in the government’s count); the Coal Mines (Special Provisions) Act received assent on 30 March 2015, replacing ordinances of October and December 2014; Dilip Ray’s case concerned the Brahmadiha block and he was sentenced on 26 October 2020; and the Fatehpur East discharge of H.C. Gupta and K.S. Kropha was ordered on 31 October 2025 and reported in early November, not in April 2025. Reports date the Birla FIR to 14 or 15 October 2013. The date of the July 2026 order opening appeals to the Delhi High Court was not reported.

Related Reading on AiTimeline

Sources & further reading

Every dated entry above was checked against these references. Last reviewed 12 November 2026.

  1. CAG Report No. 7 of 2012-13: Performance Audit of Allocation of Coal Blocks and Augmentation of Coal Production
  2. Manohar Lal Sharma v. Principal Secretary: Supreme Court judgment of 25 August 2014
  3. Manohar Lal Sharma v. Principal Secretary: Supreme Court order of 24 September 2014 on cancellation
  4. Allocation of Coal Blocks: government statement, 1 December 2014
  5. The Coal Mines (Special Provisions) Act, 2015
  6. CAG compliance audit on e-auction of coal mines (Report No. 20 of 2016), Chapter 1
  7. Supreme Court accepts CBI's clean chit to ex-PM Manmohan Singh in coal block case, sets aside summoning order (29 July 2026)
  8. Coal scam cases: SC asks Delhi HC to avoid trial stays, decide appeals in four weeks (19 August 2026)
  9. Coal scam cases: SC asks Delhi HC not to stay trials, dispose of appeals in four weeks
  10. Supreme Court stays cognizance against former Coal Secretary, Naveen Jindal, JSPL in coal block allocation case (21 July 2026)
  11. Supreme Court appoints new judge for trial of coal blocks allocation scam cases (12 January 2026)
  12. Delhi court discharges ex-Secretary in Fatehpur East coal block allocation case (4 November 2025)
  13. 'No iota of evidence': Delhi court acquits all in Bander coal block case (27 March 2026)
  14. Coal scam: Delhi court awards 4-year jail to ex-MP Vijay Darda, son (26 July 2023)
  15. Former NDA minister Dilip Ray, others convicted in Jharkhand coal scam (6 October 2020)
  16. Coal scam: CBI court sentences former Jharkhand CM Madhu Koda, 3 others to three years in jail (16 December 2017)
  17. Delhi court acquits ex-coal secretary, two other bureaucrats in Odisha coal scam case (December 2024)
  18. Special CBI court delivers first conviction in coal block allocation scam, convicts JIPL and directors (28 March 2016)
  19. Coalgate scam: ex-Coal Secretary H.C. Gupta sentenced to three years in jail (December 2018)
  20. Coal block allocations illegal: House panel (23 April 2013)
  21. Coal scam: Delhi court acquits SKS Ispat Ltd and others (27 May 2026)

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