TNI Bureau: The deal between Odisha Mining Corporation (OMC) and Delhi-based Sainik Mining & Allied Services Ltd (SMASL) for coal mining in the state, has come under the CBI scanner, as the Centre termed it illegal. Attorney General of India, GE Vahanvati appeared in the Supreme Court on November 19 and made this statement.
The Centre has already informed the state government that the pact was illegal. The CBI will probe into any possible irregularities even though the OMC had scrapped the joint venture agreement after the controversy broke out.
OMC and Sainik had formed Kalinga Coal Mining (Private) Ltd for raising coal from Utkal D block in Angul district. The Centre holds that giving 74% stake to Sainik, the OMC had violated the Coal Mines (Nationalisation) Act 1973.