Special coal Court acquits US-based energy conglomerate, first instance in history

NEW DELHI | Updated: 22 December, 2023 5:02 pm IST

NEW DELHI: Power giant, AES corporation, and its director were acquitted after a Special Court passed a verdict in their favour on the coal scam case, on Tuesday.

The bench led by Special Judge Arun Bharadwaj passed the verdict in accordance to a case filed against them by the Central Bureau of Investigation (CBI).

Tanvir Ahmed Mir, the counsel appearing for the company, illustrated that it was the first time a Special Court had acquitted someone in a CBI case.

Mir highlighted that the company had to leave India after it got embroiled in multiple cases of coal scam, stating that AES had initially proposed to invest $500 million for Sayang coal block in Chhattisgarh.

“AES Corporation had initially brought in FDI for $200 million, setting up the Odisha Power Generation Corporation. Further, in 2005, it had proposed to invest $500 million for the Sayang coal block in Chhattisgarh. However, upon being embroiled in coal scam cases it withdrew all its investments from India and packed its bags,” he said.

The alleged irregularities had led the CBI to initiate criminal prosecution under Sections 420 (cheating), 120B (criminal conspiracy) of the Indian Penal Code, as well as certain sections under the Prevention of Corruption Act.

The case was on trial for the past three years.

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The court’s order highlighted that AES Chhattisgarh Energy Private Ltd was “100 per cent” a subsidiary of the US-based corporate.

“Since this court has held that AES Chhattisgarh Energy Private Ltd was the hundred percent subsidiary of AES Corporation, USA the charges framed against the accused persons are not proved. It is not proved that the accused had cheated Ministry of Coal forallocation of Sayang Coal Block in favour of AES Chhattisgarh Energy Pvt. Ltd. There was no misrepresentation when AES Chhattisgarh Energy Pvt. Ltd. mentioned in its application that it was 100% subsidiary of AES Corporation, USA. Both the accused are therefore acquitted of all the charges framed against them i.e., under section 420 of IPC and under section 120 B IPC and 120 B IPC read with 420 IPC,” the court order noted.

AES Corporation is a power generation-based company based in the US, with a net worth of $60 billion.