Jharkhand HC Orders CBI Probe Into ₹727.67 Crore Loss In Coal Workers’ PF Investment In DHFL

The Jharkhand High Court has ordered a Central Bureau of Investigation (CBI) probe into the loss of Rs 727.67 crore incurred by the Coal Mines Provident Fund Organisation (CMPFO) due to an investment in Dewan Housing Finance Corporation Limited (DHFL), which later went bankrupt. This case pertains to an investment of Rs 1,300 crore made by CMPFO in DHFL, which subsequently became insolvent, resulting in significant financial losses for the provident fund of coal company employees.

The court's decision to initiate the CBI investigation came after hearing a petition filed by the Coal Employee Welfare Association. The petition argued that CMPFO fund managers, the State Bank of India (SBI) and UTI, had been warned about DHFL's deteriorating financial condition as early as June 24, 2019. Despite these concerns, no timely action was taken to withdraw the investment.

On December 20, 2019, CMPFO held a meeting to withdraw the investment, but it was too late; DHFL had already collapsed, leading to a loss of Rs 727.67 crore. The High Court's order seeks to examine the decision-making process behind the investment, the reasons for the delay in withdrawing the funds despite warnings, and the accountability of those involved in the matter.