Delhi Court Discharges Former Coal Secretary H.C. Gupta, RKM Powergen in Fatehpur East Coal Block Case

Special CBI court in New Delhi acquits former Coal Secretary H.C. Gupta and RKM Powergen Pvt. Ltd in Fatehpur East coal block allocation case, citing lack of evidence and public interest in allocation.
X

Delhi Court discharges former Coal Secretary H.C. Gupta, RKM Powergen Pvt. Ltd, and others in Fatehpur East coal block case, holding allocation was lawful and in public interest

Special CBI court found no evidence of wrongdoing in Fatehpur East coal block allocation; called decision in favour of RKM Powergen “an act in public interest"

A Delhi Court has discharged RKM Powergen Pvt. Ltd, former Coal Secretary H.C. Gupta, and three others in the Fatehpur East coal block allocation case, holding that there was no evidence to prosecute them and that the allocation was made in public interest.

Special Judge Dheeraj Mor of Rouse Avenue Court also discharged company promoters Andal Arumugam, T.M. Singaravel, and former Joint Secretary Kuljeet Singh Kropha after hearing arguments from both sides.

The Court found that RKM Powergen was “the most deserving company” among all applicants for the coal block.

The Central Bureau of Investigation (CBI) had filed an FIR in August 2014, alleging criminal conspiracy, cheating, forgery and corruption under the Indian Penal Code and the Prevention of Corruption Act, 1988. The agency claimed that RKM Powergen and its directors misrepresented their preparedness, submitted forged documents, and cheated the government to secure the coal block.

However, nearly three years later, the CBI filed a closure report in September 2017, stating that the allegations could not be substantiated. The special court then directed a further probe, following which a charge sheet was filed in 2023 against five accused, including Gupta and Kropha.

During the hearing, Senior Advocate Abhimanyu Bhandari, appearing for RKM Powergen, argued that the allocation was made after due evaluation and in accordance with the government’s policy to ensure optimal utilisation of coal resources for the power sector.

Judge Mor, in his order, observed that the decision of the 35th Screening Committee in recommending RKM Powergen “cannot be held to be against public interest.”

The Court noted that the allocation stemmed from a policy approved by the Energy Coordination Committee and the Prime Minister’s Office to promote power, cement and steel industries.

“Therefore, there is not even an iota of material available on record to suggest that the act of accused public servants was without public interest,” the Court said while discharging Gupta and Kropha.

Citing testimony from a CBI witness, A. Ravishankar of CMPDIL, who had ranked RKM Powergen highest after fulfilling nine of ten evaluation parameters, the court said the company was clearly the most meritorious applicant.

“Thus, it is evident that the accused company, RKM Powergen Pvt. Ltd, was the most deserving company for the allocation of Fatehpur East Coal Block out of all the applicants,” the judge recorded in the order dated October 31.

The Court concluded that the recommendation of the 35th Screening Committee and the allocation of the Fatehpur East coal block were acts done in public interest, not influenced by any mala fide intent.

In a related news, in August 2023, a Delhi Court had sentenced former Coal Secretary HC Gupta to three years of imprisonment on Monday in a coal scam case involving irregularities in the allocation of the Lohara East coal block in Maharashtra. Special Judge Arun Bhardwaj of the Rouse Avenue Court had also sentenced former joint-secretary in the Ministry of Coal (MoC), K S Kropha, to two years of imprisonment and a fine of Rs.50,000, while Gupta was fined rupees one lakh.

Case Title: Central Bureau of Investigation v. M/s R.K.M. Powergen Pvt. Ltd. & Ors.

Order Date: October 31, 2025

Bench: Special Judge Dheeraj Mor

Click here to download judgment

Tags

Next Story