Coalgate: Kumar Mangalam Birla to meet Finance Minister on Friday evening

New Delhi: Aditya Birla Chairman Kumar Mangalam Birla is likely to meet Finance Minister P Chidambaram over a CBI inquiry in the coal block allocation case. The proposed meeting comes after CBI named Birla in its 14th FIR pertaining to the coal blocks allocation scam.

The government has been in damage control mode after the CBI named Birla in the coal scam. Sources say Prime Minister Dr Manmohan Singh has told Commerce Minister Anand Sharma to reassure corporates, in an indication of how worried the government is after the CBI's latest FIR.

Several of the country's top businessmen are upset after Birla, HINDALCO and NALCO were named by the CBI in the coal scam FIR. They say it is becoming impossible to do business in India. "Hindalco owns only 15 per cent of that company. It doesn't control that company. And just because some coal block reserved for public sector is partially allocated to private sector, there's nothing wrong with that. It was done by the government. So I think it's a bit ridiculous. It spoils sentiment, it spoils perception," said Godrej Group Chairman Adi Godrej.

Hindalco owns only 15 per cent of that company. It doesn't control that company. And just because some coal block reserved for public sector is partially allocated to private sector, there's nothing wrong with that. It was done by the government. So I think it's a bit ridiculous. It spoils sentiment, it spoils perception," said Godrej Group Chairman Adi Godrej.

"I think the government must file a chargesheet and demonstrate the strong evidence they have as to why they are involving Mr Birla. If there is strong evidence against the individual of wrongdoing and there is evidence, then they are right because rule of law must prevail in this country. But if the evidence is just a meeting and a conspiracy is attached to that then I think it raises doubts," said Manipal Global Education Chairman Mohandas Pai.

Commerce Minister Anand Sharma had also slammed the CBI for putting investments in India at risk. "Birla is a respected person and this incident certainly harms the investment scene," Sharma said. Corporate Affairs Minister Sachin Pilot has also struck a note of caution and has said, "It must be ensured that such actions are based on 'hard facts' as these incidents dampen business confidence and investor sentiment."

Pilot also called for ensuring that such actions do not create an atmosphere of fear and uncertainty.