Coal India in dock Fails to transfer relief funds collected from employees
Coal India Ltd (CIL), the largest coal producing company in the world that accounts for 85 per cent of India's production, is in the dock for suspected financial irregularities and violation of Income Tax laws. In an inquiry conducted by the Prime Minister's Office (PMO), it has been found that CIL had collected crores of rupees from employees as contribution to the Prime Minister's National Relief Fund (PMNRF) and National Defence Fund (NDF) but has till date not deposited the full sum.
The inquiry, which was initiated on August 6, has found that collections made for welfare of 2005 J&K earthquake victims have still not been transmitted to the PMNRF. The funds collected for welfare of Kargil martyrs' families in 1999 were transmitted on August 27, 2008 after the inquiry was initiated.
The matter has come to light through an application filed under Right to Information (
RTI) Act. After applicant Muzibur Rehman expressed his doubt that the contributions had not been deposited in the PMNRF, Central Information Commission (
CIC) had asked the PMO to conduct an inquiry.
Director (PMO) DPS Sandhu has submitted his report to
CIC, a copy of which is with
The Pioneer. The inquiry report clearly indicates that CIL had collected Rs 40.65 crore from its employees for contribution to PMNRF. The contributions were given for Kargil martyrs in 1999, victims of 2001 Orissa cyclone, Gujarat earthquake 2001, 2004 tsunami and 2005 J&K earthquake. As per the inquiry report, contributions worth Rs 10.65 crore have still not been transferred to the PMNRF.
The company had collected Rs 7.25 crore for contribution to the NDF for the welfare of families of Kargil martyrs. However, it transferred only Rs 7.08 crore.
The report says: "Insofar as interest on the funds lying with CIL, it has been informed that no separate fund has been created for PMNRF at CIL and the fund has been kept with CIL as working capital." Keeping funds meant for PMNRF is against the norms. The inquiry report says: "The delay and unauthorised use as working capital has also caused loss of interest to PMNRF."
The report lambasts CIL and says: "It has been established that funds meant for PMNRF and NDF have not been forwarded to this office in time. Part of the funds collected at the time of Kargil war for NDF have been transmitted as late as August 27, 2007 after initiation of this inquiry."
This is not all. PMNRF contributions worth Rs 7.02 crore collected in 2005 meant for J&K earthquake victims have not been transferred till date. The PMO inquiry has found that in case of Gujarat earthquake, CIL has submitted more than the collected contributions, thereby flooding PMNRF with unaccounted for money. While it collected Rs 10.45 crore, CIL deposited Rs 12 crore. The report says: "CIL deposited excess funds amounting to Rs 1.56 crore more than the actual collection. The source of this excess collection is not clear."
The report has pointed out that PMNRF funds have been forwarded to other organisations and "relief material has been purchased from PMNRF fund, without any authorisation from PMNRF". Employees who contributed to PMNRF have claimed income tax relief as well. Sandhu says in the report: "It was also observed that income tax relief was given to the employees who have contributed to PMNRF, without transmission of funds to this office and without requisite receipt from PMNRF. This could be a violation of income tax laws."
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