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HindustanTimes Fri,26 Dec 2014

Coalgate: Jindals misrepresented facts, says CBI

PTI  New Delhi, July 01, 2013
First Published: 21:15 IST(1/7/2013) | Last Updated: 03:35 IST(2/7/2013)

The Naveen Jindal Group allegedly "misrepresented" facts and was extended "undue favour" by the Jharkhand government, which dropped other firms from its recommendation for allocation of coal blocks in the state in 2007, the Central Bureau of Investigation (CBI) has said in its FIR filed before a court here in the Coalgate scam.

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The FIR is categorical that the ministry of power was against the proposal for allocating the Amarkonda Murgadangal coal block to Jindal Group firms Jindal Steel and Power Limited (JSPL) and Gagan Sponge Iron Private Limited (GSIPL) which have been named as accused along with Naveen Jindal, Congress MP from Kurukshetra (Haryana).

However, former minister of state for coal Dasari Narayan Rao, also an accused in the FIR, had written a note to then coal secretary and showed "undue favour" to Jindal's firm, which had misrepresented facts regarding its "preparedness in setting up their proposed end-used plant (EUP)".

"An inquiry further revealed that the Jharkhand government, vide its letter dated June 20, 2007, recommended the allocation of the Amarkonda Murgadangal coal block to three companies: M/s Lanco Infratech Ltd (40%), M/s JSPL (30%) and M/s GSIPL (30%).

However, vide its letter dated July 30, 2007, the Jharkhand government changed its recommendation and recommended the allocation of the coal block to only the two Naveen Jindal Group companies, i.e. JSPL (70%) and GSIPL (30%)," the CBI said in its 12th FIR filed till date in the coal blocks' allocation scam before the special CBI court.

The agency alleged that both SPL and GSIPL misrepresented facts to the coal ministry but the screening committee, which used to recommend the allocation of coal blocks to the shortlisted applicant companies, at its meeting held on September 13, 2007, had recommended the allocation of the Amarkonda Murgadangal coal block jointly to these two firms.

"The inquiry further revealed that JSPL and GSIPL misrepresented in its application/feedback form on the count of their preparedness in setting up their proposed EUP as well the previous allocation of coal blocks to their group companies," the CBI said.

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