The government on Thursday suspended the chairman-cum-managing director of Coal India Limited, N K Sharma, on alleged corruption charges and abuse of official position.

The decision to suspend the top official of the Kolkata-based public sector unit was reportedly taken after Union Coal Minister Karia Munda briefed Prime Minister Atal

Bihari Vajpayee about the alleged misappropriation by Sharma in the purchase of coal, sources said.

After going through a departmental file, the government decided to suspend Sharma on Wednesday night and the order was served on him on Thursday morning at his Kolkata office, the sources said.

The main allegation against Sharma was that he had abused his official position and favoured a certain party while opening a tender for a job.

The sources claimed Sharma had not even opened the tender submitted by another PSU Heavy Engineering Corporation. During departmental inquiry, it was found that HEC had made the lowest bid for the job.

Another allegation against Sharma, according to the sources, was that he had sold coal at the rate of Rs 60 per tonne as against the fixed rate of Rs 20.

The inquiry alleged that the surplus money thus generated had been pocketed by some persons including Sharma, the sources claimed.

The Central Bureau of Investigation may probe Sharma.

Sharma, however, was not immediately available for comment.

Laxmi Chand takes charge

Laxmi Chand, additional secretary, ministry of coal, has been asked to take charge of Coal India following Sharma's suspension.

A communication from the ministry of coal received at the CIL headquarters says the change takes effect from the "afternoon of June 4", according to sources at the CIL.