20 July 2012

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Coal Scam Public Private Joint Venture another Method of Scam

Coal Scam Public Private Joint Venture another Method of Scam
Year 1973 –
Coal Mines Nationalization Act, 1973 was passed.
This act makes it mandatory for the Public Sector Undertaking
[PSU] to hold 51% of the joint ventures (JV) shares.

DNA reported that in all instances, the private companies are the majority shareholders where there is a joint venture between PSU and private companies.

In India, it is very difficult for the private companies to get coal blocks.
But PSU companies get coal blocks easily.
I think PSU must be getting coal blocks in cheap, as they are public sector undertaking.

Now how the fraud happens?

PSU Company gets the coal block.
After that PSU on the name of technology or giving any other reason, they enter into a joint venture with the private companies.
In this joint venture as per law as per law as per law as per law
PSU should be a majority stake, share  holder but in reality, Private Company owns the majority shares.

Private companies give the gifts to the PSU bosses or the people who can influence.

The ministry allocated a coal block to the Orissa Mining Corporation Ltd (OMC) in 2003.
OMC promptly transferred the block to Sainik Mining and Allied Services Company (SMASL) by entering into a JV with it. SMASL holds 74% of the shares, a clear violation of the Coal Mines Nationalization Act, 1973.

Everyone knows scam happened, laws are broken, but no one dares to speak and take action.

Who is responsible for this?
Chief Minister and Prime Minister

They are our Gods but they do not take action.
May be we give them less Prasad.

Prasad means a food given to God in Hindu Temple and later which is distributed to everyone.

Example of Prasad.

God my son passed the exam,  I brought you 100 cakes and later cake is given to everyone.

God  Let me  get the bribe  of Rs. 1 Crore I will donate you 1 Lakh Rupees

Reality views by sm –

Friday, July 20, 2012

Tags –
Coal Scam


MEcoy July 20, 2012  

thats sad, hope it would be fixed soon
anyways its my first time knowing that prasad thanks for sharing