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Business News/ Politics / Policy/  CBI files FIRs against two more firms in coal allocation case
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CBI files FIRs against two more firms in coal allocation case

Agency also initiates preliminary enquiry against Adani Power firms for alleged over-invoicing of imports

CBI is probing allocation of captive coal fields between 1993 and 2010 as part of a court-monitored probe. Photo: Getty ImagesPremium
CBI is probing allocation of captive coal fields between 1993 and 2010 as part of a court-monitored probe. Photo: Getty Images

New Delhi: The Central Bureau of Investigation (CBI) on Thursday filed two more first information reports (FIRs) in the case related to the irregular allocation of coal mines.

It filed cases against Vandana Vidhyut Ltd and Domco Smokeless Fuels Pvt. Ltd. While Vandana Vidhyut was allocated the Fatehpur East coal block located in the Mand Raigarh coalfield in the Raigarh district of Chhattisgarh, Domco was allocated the Lalgarh North coal block in Jharkhand.

Along with Vandana Vidyut, the FIR also names officials of the 35th screening panel of the government that cleared the allocation, a CBI official said.

“The CBI had questioned us 8-10 months back and we had given all the details," R.V. Mathe, vice-president, commercial, Vandana Vidyut, said over phone from Raipur in Chhattisgarh. Mathe said the firm is developing a 540 megawatts (MW) power plant in the Korba district of the state.

Along with Vandana Vidyut, the Fatehpur East block was also allocated to JLD Yavatmal Energy Ltd, R.K.M. Powergen Pvt. Ltd, Visa Power Ltd and Athena Infraprojects Pvt. Ltd (formerly Green infrastructure Pvt. Ltd).

In September 2012, CBI registered an FIR against JLD Yavatmal; soon after, it booked Athena Infraprojects. On 21 April this year, the agency closed the case against JLD Yavatmal.

“Domco’s directors fraudulently claimed that the company had 142 acres of land to set up a pig iron plant. They misrepresented facts," the CBI official cited above said. After getting the block, the company’s directors sold some shares at a premium to Electrosteel Castings Ltd, a Kolkata-based company, the official added. Electrosteel Castings has not been named in the FIR. A spokesperson for the company could not be immediately reached for comment.

Domco was allocated the Lalgarh North block in July 2005. On 13 September 2012, the coal ministry took back the block from the company.

Mint could not reach a company representative for comment.

With the latest FIRs, the total number so far filed by the CBI stands at 22.

The latest FIRs have been filed on the recommendation of the Central Vigilance Commission (CVC), which has suggested that the CBI file 12 more cases in the matter.

On 29 March this year, the Supreme Court (SC), which is monitoring the investigation in the coal block allocation scam, asked the CBI to share the investigation files with CVC.

The apex court asked CBI to share with CVC files related to all such cases where there was a difference of opinion between the investigating officer and senior CBI officials on filing a chargesheet or a closure report.

CBI is probing allocation of captive coal fields between 1993 and 2010 as part of a court-monitored probe. Coalfield allocations came under the scanner in August 2012 when the Comptroller and Auditor General of India (CAG) submitted a report alleging a notional loss of 1.86 trillion due to wrongful allotments. It also alleged the blocks were awarded in an opaque manner.

In a separate development, the CBI official said that last month, the agency initiated a preliminary enquiry against Adani Power Maharashtra Ltd, Adani Power Rajasthan Ltd and Maharashtra Eastern Grid Power Transmission Co. Ltd on a reference from the Directorate of Revenue Intelligence (DRI) for alleged over-invoicing of imports by the three Adani group companies, the official said.

“The companies availed various credit facilities for the purpose of procurement of power generation and power transmission equipment, machines for which were imported from South Korea and China," the official said. The machines were imported via Electrogen Infra FZE, a United Arab Emirates-based company, the official said.

An Adani group spokesperson declined to comment. Electrogen Infra officials could not be reached for comment despite repeated attempts.

Loans were taken from various public sector banks including State Bank of India, Punjab National Bank, State Bank of Maharashtra, Canara Bank, Oriental Bank of Commerce and Vijaya Bank.

The CBI official said, requesting anonymity, that according to DRI, the total over-invoicing between 2011 and 2013 was to the tune of 2,300 crore. The official added that this money was allegedly “siphoned off" abroad.

A preliminary enquiry is conducted to find out whether there is merit in registering a case and investigating the matter.

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Published: 25 Jul 2014, 12:27 AM IST
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