CBI begins probe into Rs 487 crore coal import scam | Latest News India - Hindustan Times
close_game
close_game

CBI begins probe into Rs 487 crore coal import scam

New Delhi | By, New Delhi
Jan 23, 2018 07:26 PM IST

The agency has booked NTPC officials, Coastal Energy Private Limited promoter under the charges of criminal conspiracy cheating and provisions of the Prevention of Corruption Act.

The CBI has registered an FIR against unnamed officials for importing inferior coal from Indonesia as high quality between 2011 and 2015, which led to an overpayment of Rs 489 crore by the National Thermal Power Corporation (NTPC) and Aravali Power Company.

The officials had allegedly entered into a criminal conspiracy to cheat the government by importing coal of Indonesian origin by fraudulently showing inferior quality coal as that of superior quality.(File Photo)
The officials had allegedly entered into a criminal conspiracy to cheat the government by importing coal of Indonesian origin by fraudulently showing inferior quality coal as that of superior quality.(File Photo)

Officials of the government-owned NTPC, the Metals and Minerals Trading Corporation (MMTC) and Aravali Power are named in the case along with AR Burhari, a promoter of the Chennai-based Coastal Energy Private Limited (CEPL).

Hindustan Times - your fastest source for breaking news! Read now.

The Aravali Power is joint venture between the NTPC and governments of Haryana and Delhi and the two companies run coal-fired thermal power plants. To meet their fuel needs, they import coal by floating global tenders.

According to the FIR, the Chennai-based CEPL was awarded the contract after a successful bid to supply coal to the NTPC and Aravali Power. The CEPL singed back-to-back agreements later with its sister concerns in Dubai.

Another public sector undertaking, the MMTC, was awarded supply contracts too and it had an agreement with the CEPL and two other firms, which contracted coal exporters form Indonesia, the FIR says.

The CBI alleged that on the basis of artificially inflated invoices and manipulated test reports low quality coal was passed off as high quality.

According to a government notification of 2010, thermal grade coal import from Indonesia was granted concessional rate of duty. To avail concession, a certificate of origin issued by a government authority of the exporting country is required. The certificate mentions the value of coal being exported and the price is determined in accordance with quality.

But in order to avoid submission of factual documents and hide value of import, MMTC and CEPL didn’t apply for the custom duty concession in several consignments, though they were bound by contract to pass the benefit in custom duty to the NTPC and Aravali Power, the CBI alleged.

The investigating agency suspected the alleged fraud cannot happen without the knowledge of officials in the NTCP and Aravali Power.

The MMTC and CEPL imported 90 and 57 consignments respectively, of which 143 consignments were for NTPC and four for Aravali Power.

According to the directorate of revenue intelligence (DRI), which looks into custom duty violations, over-invoicing to the tune of Rs 487 crore was done by the MMTC and CEPL.

Unveiling 'Elections 2024: The Big Picture', a fresh segment in HT's talk show 'The Interview with Kumkum Chadha', where leaders across the political spectrum discuss the upcoming general elections. Watch now!

Get Current Updates on Election 2024, India News, Lok Sabha Election 2024 LIVE along with Latest News and Top Headlines from India and around the world.
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Tuesday, March 19, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On