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March 22, 2012
New Delhi

CAG writes to PM clarifying the coal block issue

With reference to the lead story published in the Times of India today titled “Government lost Rs 10.7 lakh cr by not auctioning coal blocks: CAG”, the Prime Minister has received a letter from the Comptroller and Auditor General of India at 1:30 pm today.
Among other things, the letter clarifies that:

“In the extant case the details being brought out were observations which are under discussion at a very preliminary stage and do not even constitute our pre-final draft and hence are exceedingly misleading. … Pursuant to clarification provided by the Ministry in exit conferences held on 9.02.2012 and 9.03.2012, we have changed our thinking  …. In fact it is not even our case that the unintended benefit to the allocatee is an equivalent loss to the exchequer. The leak of the initial draft causes great embarrassment as the Audit Report is still under preparation. Such leakage causes very deep anguish.”