Ex-Coal Secretary Gupta, Vijay Darda Acquitted in Coal Case

A special court in New Delhi on Friday acquitted former coal secretary H.C. Gupta, former Rajya Sabha MP Vijay Darda, his son Devendra Darda, and several others in the Bander coal block allocation case, ending one of the longest-running legal proceedings linked to India’s coal allocation controversy. The verdict comes more than a decade after the Central Bureau of Investigation (CBI) first registered the case in 2012.

The case pertained to allegations that the Bander coal block in Maharashtra was allotted improperly to AMR Iron and Steel Pvt. Ltd, with the accused allegedly conspiring to secure the block through falsified information and undue influence. The prosecution had charged Gupta, the Dardas, and several corporate officials with criminal conspiracy, cheating, and misconduct under the Prevention of Corruption Act.

However, Special CBI Judge Sunena Sharma observed that the prosecution failed to establish sufficient evidence of wrongdoing. The court noted that the allocation decisions were made as part of broader government policy through high-level committees, including inputs from the Prime Minister’s Office, rather than through individual malfeasance. As a result, all accused were acquitted of charges including criminal conspiracy (Section 120B IPC) and cheating (Section 420 IPC).

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In addition to Gupta and the Dardas, the court acquitted businessman Manoj Kumar Jayaswal, the directors of AMR Iron and Steel, and the corporate entity itself. The judge highlighted that the evidence did not demonstrate dishonest intent or a criminal nexus among the parties, effectively ending this particular legal proceeding.

The Coalgate scandal, as it is popularly known, emerged after a 2012 Comptroller and Auditor General (CAG) report criticised discretionary coal block allocations without competitive bidding, citing substantial losses to the public exchequer. Multiple cases ensued across various coal blocks, resulting in convictions, acquittals, and ongoing litigation over the past decade.

The acquittal of prominent figures such as Gupta and Vijay Darda is likely to draw significant public and political attention, though other related coal block cases continue to be examined in Indian courts. The ruling reinforces the complexity of prosecuting high-level policy decisions in India’s coal allocation framework and highlights the challenges investigative agencies face in proving individual culpability in systemic allocation decisions.

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