No state govt nod, yet Darda company got coal block: CBI

The firm fudged credentials to become eligible for a recommendation from power ministry.

Congress leader and Rajya Sabha member Vijay Darda's company got coal block in Chhattisgarh without a recommendation from the state government, the CBI has stated in its FIR.

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A copy of the relevant portion of the FIR, which HT has accessed, states that JLD Yavatmal Energy, the company named as an accused by the CBI and promoted by Vijay Darda along with Maharasthra education minister Rajendra Darda, got a captive coal block despite being not recommended by the government of Chhattisgarh, the state where the block was located.

A recommendation from the state government was among the criteria for considering a company for allocation. The UPA government and Congress party have repeatedly stressed that all the coal block allocations under scanner of the CBI were done on the recommendations of the state government concerned.

The FIR also states that the company fudged its credentials to become eligible for a recommendation from the power ministry — another criteria for coal allocation. On the basis of the analysis of the Central Electricity Authority (CEA), the ministry of power has recommended to the ministry of coal to keep a minimum net worth of R0.5 crore per megawatt of the maximum capacity of the proposed power plant as a pre-qualified criteria for the applicant companies. JLD Yavatamal, with a proposed capacity of 1251 mw would not have qualified for recommendation from the ministry but for a deception.

According to the CBI, other groups or associate companies of JLD Yavatmal had been allocated 4 coal blacks between 1999 and 2005 but the company didn't disclose this while applying for fresh blocks.