5 hrs ago
Jharkhand High Court Orders CBI Probe Into Coal Fund Loss
The fund that holds provident money for coal workers invested Rs 1,300 crore in a company called DHFL.
DHFL later went bankrupt, and the fund lost Rs 727.67 crore.
The workers’ group that filed the court case said warnings about DHFL’s financial troubles came in June 2019.
It alleged that the investment was not withdrawn in time.
A proposal to withdraw the money was passed later, in December 2019.
Employees opposed a later proposal to write off the loss.
The Jharkhand High Court has asked the CBI to investigate what happened.
The investigation will look at the investment decision, the delay, and who was responsible.
The Jharkhand High Court ordered a CBI investigation into a Rs 727.67 crore loss from coal workers’ provident fund money invested in DHFL.
The Coal Mines Provident Fund Organisation invested Rs 1,300 crore in DHFL, which later went bankrupt.
The petition alleged that SBI and UTI warned of DHFL’s financial troubles on June 24, 2019, and advised withdrawing the investment.
A CMPFO meeting passed a withdrawal proposal on December 20, 2019; employees later opposed a proposal to write off the loss.
The CBI probe will examine the investment decision, the delay in withdrawal, and responsibility for the loss; Coal India’s board had also proposed a coal-production cess.
- Who
- The Jharkhand High Court ordered the CBI to investigate the Coal Mines Provident Fund Organisation’s investment in DHFL.
- What
- A CBI probe into a reported Rs 727.67 crore loss from a Rs 1,300 crore investment.
- Where
- Jharkhand, India.
- When
- October 8, 2026; the court order was issued on a Thursday.
- Why
- The court ordered the probe to examine the investment decision, alleged delay in withdrawing funds despite warnings, and responsibility for the loss.
Key facts
- Amount invested
- Rs 1,300 crore
- Reported loss
- Rs 727.67 crore
- Investor
- Coal Mines Provident Fund Organisation (CMPFO)
- Investment recipient
- Dewan Housing Finance Corporation Limited (DHFL)
- Reported warnings
- SBI and UTI reportedly flagged concerns on June 24, 2019
- Withdrawal proposal
- Passed at a CMPFO meeting on December 20, 2019
- Write-off proposal
- Placed before a CMPFO investment-related sub-committee on November 22, 2021; employees opposed it
- Additional recovery proposal
- The Coal India Board of Directors proposed a cess of Rs 10 per tonne of coal production
Sources
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