[Coal Scam] “It Would Be Inappropriate to Allow Him to Contest an Election For Any Public Office Until Fully Acquitted”: HC Reserves Judgment on Former Jharkhand CM Madhu Koda’s Plea to Stay Conviction

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Today, On 3rd September, The Delhi High Court reserved its decision on former Jharkhand Chief Minister Madhu Koda’s plea to stay his conviction in the coal scam case. Koda is seeking relief from his conviction while legal proceedings are ongoing.

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New Delhi: The Delhi High Court on Tuesday reserved its decision on a plea by former Jharkhand Chief Minister Madhu Koda, who sought a stay on his conviction in a coal scam case to allow him to participate in the upcoming assembly elections.

Justice Neena Bansal Krishna noted that both Koda and the Central Bureau of Investigation (CBI), which conducted the investigation, have already submitted their written arguments.

The CBI opposed Koda’s application on the grounds of maintainability. Koda requested the court to suspend his December 13, 2017, conviction order so he could run in the 2024 Jharkhand state assembly elections.

Senior advocate R S Cheema and lawyer Tarannum Cheema, representing the CBI, argued that a similar application by Koda dismissed in May 2020, making his current plea for the same relief non-maintainable.

The Central Bureau of Investigation (CBI) argued in its submissions that,

“This court previously acknowledged the growing demand for decriminalization of politics and, in line with this principle, unequivocally dismissed the application. Notably, no appeal was filed against this judgment, allowing it to reach finality.”

In May 2020, the high court refused to stay Madhu Koda’s conviction, stating that,

“It would be inappropriate to permit him to contest an election for any public office until he is fully acquitted”

The court emphasized that the prevailing view is that individuals facing criminal charges should be disqualified from running for public office, and therefore, it would not be appropriate to stay Koda’s conviction to help him overcome the resulting disqualification.

Madhu Koda, along with former coal secretary H C Gupta, former Jharkhand chief secretary A K Basu, and Koda’s close associate Vijay Joshi, sentenced to three years in prison by a trial court. They found guilty of engaging in corrupt practices and conspiring criminally in the allocation of the Rajhara North coal block in Jharkhand to the Kolkata-based company Vini Iron and Steel Udyog Ltd (VISUL).

Former Jharkhand Chief Minister Madhu Koda

The court also imposed fines, VISUL was fined Rs 50 lakh, Koda Rs 25 lakh, Gupta Rs 1 lakh, and Basu Rs 1 lakh in connection with the UPA-era coal scam.

According to the Representation of the People Act, any person convicted of a crime and sentenced to at least two years in prison is immediately disqualified from serving as an MP, MLA, or a member of a state legislative council (MLC). This disqualification remains in effect for six years following their release from prison.

The convicted individuals were granted bail while their appeals are pending. They tried for offenses under Section 120-B (criminal conspiracy) in conjunction with Section 420 (cheating) and Section 409 (criminal breach of trust by public servants) of the Indian Penal Code, along with provisions of the Prevention of Corruption Act.

The CBI stated that the company applied for the allocation of the Rajhara North coal block on January 8, 2007. Despite the fact that the Jharkhand government and the Ministry of Steel did not recommend VISUL’s case for coal block allocation, the 36th Screening Committee still granted it to the accused firm.

The CBI further asserted that Gupta, who chaired the screening committee,

“Concealed the fact from then Prime Minister Manmohan Singh, who also held the coal portfolio, that Jharkhand had not recommended VISUL for the coal block allocation.”

The High Court’s reserved decision will be pivotal in determining whether Koda can contest in the upcoming elections, with significant implications for both his political career and the broader narrative around political accountability and the fight against corruption in India.



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