CBI Charges Hindalco With Corruption Over Environmental Clearances For Odisha Coal Mine

The Central Bureau of Investigation has booked the country's leading aluminium producer Hindalco Industries Ltd. of the Aditya Birla Group for alleged corruption in getting environmental clearances for coal mining between 2011 and 2013, officials said on Tuesday.

The agency has also named T Chandini, the then director in the Union Ministry of Environment and Forests, for favouring the company as member secretary of the Expert Appraisal Committee ((EAC) in allowing mining in the Talabira-I mine in the critically polluted area of Odisha's Jharsuguda in violation of ministry guidelines, they said.

The central probe agency has registered the FIR after a nearly eight-year-long preliminary inquiry.

The CBI registered the preliminary inquiry in 2016 on allegations that the Aditya Birla Management Corporation Private Limited (ABMCPL) had allegedly paid 'massive bribes' between 2011 and 2013 to ministry officials for getting mandatory environmental clearance to mine coal from Talabira.

The findings of the inquiry showed that the ministry had made it mandatory in 2006 for a company to seek environment clearances for all new projects, expansion of existing products and any change in the product mix in an existing manufacturing unit.

The projects needing prior environmental clearance were supposed to go through the EAC, consisting of experts from different disciplines. The clearance was given by the regulatory authority based on the EAC's recommendation.

Hindalco received its first environmental clearance in 2001 for mining 0.4 million tonnes per annum (MTPA) of coal from the Talabira-I mine. Another clearance was given in January 2009 for its expansion, allowing the increase in mining from 0.4 MTPA to 1.5 MTPA.

Nearly a month after the second clearance, the company sought to double its capacity to 3 MTPA, which was to be considered by the EAC, it said.

It emerged that the company had allegedly violated clearances given in 2001 and 2009 by producing more coal than permitted by the ministry, the FIR said.

The company allegedly mined 3.04 MTPA excess coal from 2004-05 to 2007-08 and 2008-09, it said. "This fact became known during the process of consideration by the EAC of which T Chandini, director, was the member secretary," the FIR alleged.

The Odisha State Pollution Control Board and the Central Pollution Control Board confirmed during the inquiry that the Talabira mine was in the critically polluted area of Jharsuguda, the CBI alleged.

According to ministry rules, in-pipeline projects in critically polluted areas or those applying after Jan. 13, 2010, were to be returned to the project proponent by member secretaries with the approval of the advisor.

The inquiry showed that Chandini, despite being fully aware that the company was mining excess coal in violation of previous environmental clearances, did not return the project, as stipulated in the ministry circular.

"Rather she acted to the contrary in as much as the proposal of HIL (Hindalco) was continued to be processed which amounted to misuse of her official position to favour HIL," the CBI FIR has alleged.

Chandini, by misusing her official position, communicated to Hindalco that their proposal for grant environmental clearance would be considered in the next meeting of the EAC to be held on Feb. 25 and 25, 2010, the agency alleged.

She allegedly ensured that the clearance was granted in haste, considering the fact that Hindalco was already in violation of earlier clearances granted by the ministry, as it was already mining excess coal from the Talabira-I coal mine, it said.