The Comptroller & Auditor General, CAG has told the Prime Minister Dr. Manmohan Singh that the media reports on alleged coal scam published in a newspaper are exceedingly misleading. Quoting CAG, the daily claimed that the government has lost 10.7 lakh crore rupees by not auctioning coal blocks. Rejecting the claim, the CAG in a letter to Dr. Singh said, the details being brought out were observations which are under discussion at a very preliminary stage.

Later, talking to reporters on the sidelines of Padma Award function at Rashtrapati Bhavan yesterday, the Prime Minister said, the CAG has clarified that there is no report. Dr. Singh asked, what was there to clarify when there was no report. The Prime Minister said the CAG has written a letter and the PMO has released a part of the letter.

Finance Minister Pranab Mukherjee also described the CAG's report as only a draft and not yet a CAG report. He was speaking to reporters in New Delhi.

In the afternoon a function will be organised at Khatkar Kalan, ancestral village of Bhagat Singh in Shahid Bhagat Singh Nagar (Nawan Shahir) of Punjab.