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Coal scam: Court to consider CBI’s chargesheet today

Updated: May 5th, 2015, 19:05 IST
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press trust of india, New Delhi, May 5: A special court is likely to pronounce its order on consideration of CBI’s chargesheet filed in a coal scam case against industrialist Naveen Jindal, former minister of state for coal Dasari Narayan Rao, ex-Jharkhand Chief Minister Madhu Koda and 12 others, Wednesday.

Special CBI Judge Bharat Parashar had on April 30 fixed Wednesday for considering the chargesheet filed in the case relating to alleged irregularities in allocation of Amarkonda Murgadangal coal block in Jharkhand in 2008 to Jindal Group firms – Jindal Steel and Power Ltd (JSPL) and Gagan Sponge Iron Pvt Ltd (GSIPL).

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On April 29, CBI had chargesheeted 15 accused, including five firms, in the case for alleged offences under sections 120-B (criminal conspiracy) read with 420 (cheating) of IPC and under provisions of the Prevention of Corruption Act.

Besides Jindal, Rao and Koda, former coal secretary H C Gupta and six others – Gyan Swaroop Garg, Suresh Singhal, Rajeev Jain, Girish Kumar Suneja, R K Saraf and K Ramakrishna Prasad – were chargesheeted in the case.
The five firms named as accused in the charge sheet were JSPL, Jindal Realty Pvt Ltd, Gagan Infraenergy Ltd, New Delhi Exim Pvt Ltd and Soubhagya Media Ltd.

The agency has alleged in the chargesheet that Jindalgroup firms had misrepresented facts to acquire the coal block in 2008.

In its FIR lodged in the case, CBI had alleged that Jindal group was shown favour by the Jharkhand government, which had dropped other firms from its recommendation for allocation of coal block in the state in 2007.
The FIR was categorical that ministry of power was against the proposal for allocating Amarkonda Murgadangal coal block to JSPL and GSIPL.

JSPL, in a statement, had denied the allegations made against it and its management and had said that it would take appropriate remedy in accordance with law.

In its FIR, the CBI said the Jharkhand government had June 20, 2007 recommended allocation of Amarkonda Murgadangal coal block to three companies namely Lanco Infratech Ltd (40 per cent), JSPL (30 per cent) and GSIPL (30 per cent).

“However, vide its letter dated July 30, 2007, Government of Jharkhand changed its recommendation and recommended the allocation of Amarkonda Murgadangal block to only the two Naveen Jindal Group companies i.e. M/s JSPL (70 per cent) and M/s GSIPL (30 per cent),” the FIR had said.

CBI also alleged that both JSPL and GSIPL had misrepresented facts in its application/feedback form on the count of their preparedness in setting up their proposed end-use plant as well on the previous allocation of coal blocks to their group companies.

Regarding Rao, CBI had claimed that in order to influence the decision of the Screening Committee in favour of JSPL and GSIPL, the then minister of state for coal had written a note on July 27, 2007 to the coal secretary, who was also chairman of the Screening Committee.

It had said that JSPL had submitted its application for coal block allocation in January 2007 to the coal ministry for securing few blocks earmarked for power sector, including Amarkonda Murgadangal coal block in Jharkhand for its proposed 1000 MW captive power plant to be set up at Patratu.

GSIPL had also submitted its application dated January 10, 2007 to the ministry for its 1000 MW independent power plant in Dumka district in Jharkhand, the CBI said, adding that the allocation letter was issued to the two firms on January 17, 2008.

Rao, a former Congress Rajya Sabha MP, held position of minister of state for coal between 2004-06 and between 2006 and 2008.

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