Should ministers defend coal scam-accused Kumar Mangalam Birla?

GN Bureau | October 17, 2013



Filing its 14th FIR in the alleged coal blocks allocation scam, the CBI has named, among others top industrialist Kumar Mangalam Birla and former union coal secretary PC Parakh. According to the investigating agency, Birla had met then coal secretary Parakh in 2005 to push for allocation of a coal block in Odisha’s Jharsuguda district for a group company, Hindalco, though terms allowed allocation only to public sector companies.

While the Birla group has reacted with shock, calling it ”unfair” and “inappropriate” to accuse Birla in the scam since he was not involved in everyday affairs of Hindalco and India Inc has reacted with a similar shock, at least two ministers have come out batting for the Aditya Birla group chairman. A day after the media carried news of the FIR, commerce and industry minister Anand Sharma on October 16 said, "I can't fathom how a case of impropriety can be made against Birla, an iconic industrialist respected all over the world."

Corporate affairs minister Sachin Pilot said, "Recent incidents will certainly dampen business confidence and investment sentiments — both domestic and foreign. And perhaps also negatively affect decision-making by bureaucrats and policy-makers."

A report in the Economic Times also quoted information and broadcasting minister Manish Tewari saying, “We seem to have set out to turn the clock back to an era where profit was a dirty word”, and minister of state for telecom, shipping and ports Milind Deora quipping, “I do not agree with the way people’s names are dragged into controversies.”

But should ministers make remarks seemingly in favour of an industrialist who has been accused in one of the country’s biggest alleged scam till date? Notwithstanding their portfolios, should they be seen as batting for an industrialist, or the industry as a whole, even without checking the merits of the FIR? Will they not be seen as lobbyists in such cases?

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