The coal allocation scam commonly referred to as ‘coalgate’ is the scandal pertaining to government’s allocation of the nation`s coal deposits to private companies as well as public sector entities. The Comptroller and Auditor General of India (CAG), in its draft report issued in March 2012, accused the government of allocating coal blocks in an inefficient manner during the period 2004-2009, thereby incurring a loss to the tune of Rs 10,60,000 crore to the exchequer.
Owing to stiff opposition, the Central Bureau of Investigation (CBI) began probe into whether the allocation of the coal blocks was influenced by corruption. Later, an Inter-Ministerial Group (IMG) was formed to review the coal blocks which were allotted. The IMG has concluded the scrutiny of more than 30 coal blocks allotted to private firms and the government accepted its recommendations for de-allocation of more the 10 mines.