Ranchi: The Jharkhand High Court has sought an explanation from the Centre and other respondents over the alleged financial irregularities and loss of ₹727.67 crore involving the Coal Mines Provident Fund (CMPF). During the hearing, the court questioned why an FIR had not been registered despite the alleged loss of such a substantial amount. The court has sought details of the steps taken beyond the internal vigilance inquiry and asked whether any proposal for registration of an FIR or other criminal action is under consideration.
A division bench comprising Chief Justice M.S. Sonak and Justice Rajesh Shankar directed all concerned respondents to submit detailed affidavits by September 3. The matter is scheduled to be heard next on September 10.
Petitioners Allege ₹727.67 Crore Loss
The petitioners told the court that ₹727.67 crore was allegedly lost due to negligence and improper decisions taken in the management and investment of the Coal Mines Provident Fund. They alleged that senior officials responsible for overseeing the fund’s financial management and investments took decisions that adversely affected the fund’s financial position.
The petitioners further alleged that the advice provided by fund managers and experts appointed for investment-related matters was ignored. According to their claim, greater consideration of professional advice could have prevented the fund from suffering such a substantial financial loss.
Court Questions Absence of FIR Despite Vigilance Inquiry
During the hearing, the court focused on the action taken after the internal vigilance inquiry. The petitioners informed the court that, to their knowledge, no FIR had been registered in connection with the alleged financial irregularities.
The High Court has asked the respondents to clarify what action has been taken at the criminal level apart from the vigilance inquiry. It also wants to know whether the findings of the internal inquiry have led to any proposal for criminal proceedings.
If registration of an FIR has been proposed, the respondents have been asked to explain its present status. The Centre and other concerned parties will now have to place details of the investigation and action taken before the court through their affidavits.
Investment Decisions Under Scrutiny
A key issue in the case is likely to be the investment decisions that allegedly resulted in the ₹727.67 crore loss and the procedure followed while taking those decisions. The petitioners have alleged that the advice of fund managers and financial experts was disregarded, potentially increasing the risk associated with the investments.
The respondents will be expected to explain the rules and procedures under which the investment decisions were taken. They may also have to clarify how the alleged financial loss was calculated and what steps have been taken to determine responsibility for the decisions in question.
Affidavits Due by September 3
The division bench has directed all respondents to file detailed affidavits by September 3. The responses are expected to cover the internal vigilance inquiry, the alleged financial loss, the role of officials and the possibility of criminal proceedings.
The court is scheduled to hear the matter again on September 10. The next hearing could provide greater clarity on the Centre’s response to the court’s questions, particularly regarding the absence of an FIR and the status of any proposed criminal action.
The High Court has not, at this stage, held any official or individual guilty of wrongdoing. The allegations concerning the ₹727.67 crore loss remain subject to investigation and judicial consideration. The actual extent of the financial loss, the circumstances surrounding the investment decisions and responsibility for any irregularities will depend on the records and evidence placed before the court.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
