India's Central Bureau of Investigations (CBI) is seeking permission to prosecute the head of a state-owned coal mining operation in an alleged fraud case that involves a fake bank guarantee.

The Ministry of Coal is currently considering the CBI's request to prosecute the chairman and managing director of Western Coalfields Limited (WCL), D C Garg.

Fake guarantee

According to the investigators, Garg tried to protect a company that allegedly defrauded WCL.

Sai Construction is accused of providing a fake bank guarantee in a winning bid for a construction contract with WCL in 2007.

Investigations derailed

The guarantee for around US$500,000 ostensibly supported Sai's bid to construct a culvert for WCL at its mines in Chandrapur.

Investigators at CBI say Garg actively sought to derail investigations that began after the allegedly fake bank guarantee was uncovered.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.