CBI registers case of alleged corruption against Jindal Steel in coal scam

Central Bureau of Investigation (CBI) has registered another case against Jindal Steel Power in connection with the coal scam probe. A case of cheating and corruption has been registered against the company.

This is the second case against the company, and its chairman and former Congress MP Naveen Jindal has already been questioned by CBI in the previous case over allocation of a coal block in Jharkhand.

The CBI spokesperson said that this is the 36th first information report (FIR) in connection with its probe in the coal scam. The fresh case has been registered against Jindal Stripes Limited (now known as Jindal Steel and Power Limited) and unknown public officials for alleged criminal conspiracy and cheating under the Indian Penal Code and provisions of the Prevention of Corruption Act, CBI sources said.

CBI sources said that soon after registering the case, the agency carried out searches at four locations in Raigarh, Chhattisgarh. CBI sources said that the case pertains to allocation of Gare Palma IV/1 coal block in Chhattisgarh to Jindal Strips Limited and JSPL.

"JSPL reiterates that all its actions are in keeping with the legal framework of the country and that it complies with the law in letter and in spirit. JSPL continues to cooperate with all the authorities in a responsive manner," said a JSPL spokesperson.

The CBI spokesperson said the instant case is the outcome of the preliminary enquiry registered on September 26, 2012, looking into allocations of coal blocks during 1993-2005. It was alleged that the Gare Palma IV/1 coal block was allocated to the said private company for their sponge iron plant (SIP). It is alleged that the company proposed and entered into irregular mining lease, including the area much beyond the coordinates stipulated by ministry of coal, resorted to excess coal mining and irregular regularisation of area beyond coordinates, according to a CBI official.

The company has also been accused of sale of raw coal and coal fines, and middling to other than specified end-users, irregular permission for consumption of coal in expansion of kilns and other related allegations, sources said.

The company is already facing CBI probe for alleged cheating and misrepresentation of facts in bagging the Amarkonda Murgadangal block, in Birbhum district, Jharkhand, in 2008.

The investigation agency has claimed that the misrepresentation was allegedly done on three counts-land, water supply and previous allocations.

In the same FIR, former minister of state for coal Darari Narayan Rao has also been named as an accused. It is alleged that Rao favoured the Jindal Group bypassing the then-power minister Sushilkumar Shinde's recommendation that four blocks in Jharkhand should be shared between Bhushan Energy and Jindal Power and Steel equally. Rao overruled Shinde and allocated all four coal blocks to Jindal. During Rao's tenure (2004-2006 and 2006-2008) as coal minister, the Jindals were allocated five coal blocks.

It is also alleged that an investment worth Rs 2.25 crore was made by one of the companies owned by Jindals in Hyderabad-based Saubhagya Media Limited, owned by Rao.

CBI has also alleged that shares of Rao's company worth Rs 28 in 2008 were purchased at Rs 100 by one of Jindal's firms New Delhi Exim. These transactions took place within a year of Jindal getting the coal blocks.