Indian coal firms see police raid

PARIS - The Associated Press

An activist impersonating Indian PM Singh (L) stands with a mock coal worker.

Federal law enforcement officials raided offices and homes in 10 cities across India yesterday as part of an investigation into irregularities in the award of coalfield concessions to private and state companies that has sparked a political crisis.

The Central Bureau of Investigation (CBI) has filed cases against five companies and charged a number of officials with criminal conspiracy, cheating and intention to commit a crime, CBI officials said. 
No arrests have yet been made, although documents have been seized.

The five companies, which are not listed on stock exchanges, are small-time players in the main coal-producing states of eastern India. They include Vinni Iron & Steel, JLD Yavatmal Energy, Jas Infrastructure and AMR Iron & Steel, a CBI official said on condition of anonymity because raids were still under way.

Politicial tensions

Jas Infrastructure confirmed there had been a raid on its corporate office, but there was no immediate confirmation from other companies. 

The raids come at a critical time for Prime Minister Manmohan Singh’s government, which has been on the defensive since the state auditor last month questioned the lack of transparency in the allocation of scores of coalfields.

The main opposition Bharatiya Janata Party (BJP) seized on the report to paint the government as corrupt and has all but paralyzed parliament with its demands for Singh to quit over the affair, which the Indian media has dubbed “coalgate.”