The Supreme Court on Monday issued notice to the Centre and the Orissa government on a plea alleging that majority stake in a coal block, allocated to the state mining corporation, was illegally given to a private company. The public interest litigation (PIL) has alleged that Orissa Mining Corporation (OMC) was divested of the coal block, in Talcher coalfield of Angul district, and the same was handed over to Delhi-based private mining firm Sainik Mining and Allied Services Ltd. The petitioner, Talcher-based social activist P.C. Sahu, has also sought a CBI probe alleging that the state-owned OMC illegally gave 74 per cent stake in the coal block to the private company. A bench of Justices R.M. Lodha and A.R. Dave also issued notices to the CBI, the OMC, the ministry of coal, the ministry of environment and forests and to the private firm. The petitioner’s counsel told the court that the manner in which 74 per cent stake in the coal block was given to the private firm pointed to breach of constitutional provisions of equality. There were dubious transactions involving politicians and the decision of the state government was influenced by favouritism, he said. “While the conduct of the Orissa government was manifestly illegal, that of the Centre remaining silent despite noticing the various acts of omission by the state is equally shocking,” the plea said. The counsel told the court that the Central government’s communication of December 19, 2003, giving in-principle consent was sent to OMC on January 5, 2004. But much before that, the state-owned mining company entered into an agreement with Sainik Mining giving it 74 per cent stake. The apex court-appointed Central Empowered Committee on environmental matters held as highly improper the diversion of 137.02 hectares of forest land for coal mining, the petition said. It added that following the CEC’s findings, the Centre had written to the state government on April 1, 2009 pointing to illegality committed by giving 74 per cent equity to the private partner. The Centre had asked Orissa to modify the Memorandum of Articles of Association in the joint venture, so that the OMC would have 51 per cent stake in the venture. The state government was also told to make the JV a government company. The Centre, later, had also issued a show cause notice to the state.