The Central Bureau of Investigation is finalising a report on its probe into the allocation of coal blocks and is understood to have unearthed discrepancies in the allocations, with the involvement of officials of State governments at various levels.

The CBI is preparing the ground for lodging of a first information report (FIR), which could well become the basis for cancellation of allocations. Sources in the government said the CBI scrutinised around 1,400 applications and found that a number of private players had either misrepresented facts to get allotment or were recommended by the respective State governments.