Key Highlights
- Jharkhand High Court has ordered a CBI investigation into the CMPFO’s unrecovered 727.67 crore investment in DHFL.
- CMPFO had invested around Rs. 1,300 crore in DHFL, which later went bankrupt.
- A significant portion of the investment could not be recovered, leading to questions from employees.
- An Investment Sub Committee had proposed writing off Rs. 727.67 crore in November 2021.
- Coal India had also proposed a Rs. 10 per tonne cess on coal production to compensate for the amount, according to the petition.
- The PIL was filed by the Coal Employees Welfare Association, seeking an independent probe into the investment and subsequent actions.
Ranchi: The Jharkhand High Court has ordered a CBI investigation into the case involving Rs. 727.67 crore of the Coal Mines Provident Fund Organisation (CMPFO) that remained unrecovered from its investment in DHFL. A division bench of Chief Justice M.S. Sonak and Justice Manoj Prasad passed the order while hearing a public interest litigation filed by the Coal Employees Welfare Association.
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The case relates to CMPFO’s investment of around Rs. 1,300 crore in DHFL, which later became insolvent, leaving a substantial portion of the employees’ provident fund money unrecovered. According to the petition, on 20th December 2019, a CMPFO meeting had decided to take steps to recover the stuck investment. However, the entire amount could not subsequently be recovered. The matter later came up before the Investment Sub Committee of CMPFO’s trustees.
Employees Objected to 727.67 Crore Write-Off Proposal
At a meeting held on 22nd November 2021, the Investment Sub Committee considered a proposal to write off the unrecovered Rs. 727.67 crore. Employees questioned the move, arguing that the money was linked to their provident fund and that the investment decision and subsequent handling of the funds required an independent examination. The petition also referred to a proposal by Coal India’s board to impose a Rs. 10 per tonne cess on coal production to compensate for the amount that could not be recovered.
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CBI Probe to Examine the Entire Sequence
The PIL raised questions not only over the investment in DHFL but also over the efforts made to recover the money and the subsequent proposal to write it off. After hearing the arguments of the petitioners and respondents, the High Court directed the CBI to investigate the matter. The probe will now examine the circumstances surrounding the investment, the recovery efforts, the proposed write-off and other aspects placed before the court.
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