Coal news and updates

Black marketing of coal? Offences filed against MCCF officials

Police today claimed to have busted a racket that was allegedly involved in lifting of coal from mines owned by Western Coalfields Limited under small and medium enterprises (SME) quota and selling it in open market for a premium.

Local Crime Branch (LCB) officials today arrested one C K Reddy and Karim Abdul Sheikh, driver of a truck carrying coal in this connection, SP Rajiv Jain said.

Police have also registered offences against nine persons, including four officials from the Maharashtra State Cooperative Consumers Federation (MCCF), in this regard.

The Federation acts as nominee for providing coal to the SME sector in the state. "Lifting of coal from local mines of the Western Coalfields Limited (WCL) in the names of small scale industries quota has been on for many years," he said.

Though police have not found any clues regarding involvement, if any, of the WCL officials, the investigation will be carried in that regard as well in due course, the SP said.

"Coal meant for SMEs was lifted and being supplied to bogus companies by these black marketers," Jain said. "ShriRoop Agencies, a Kamptee-based company owned by Aggrawal Brothers has so far illegally lifted 10,457 metric tonne of coal valued at over Rs 4.50 crore," the SP said. According to the officer, the coal was lifted from different coal mines without proper delivery memo from MCCF and without making payment against the delivery.

"The special quota of coal meant for SME units has been sold in the open market to bogus companies on a higher premium," he said. Police conducted simultaneous raids at two places in Chandrapur and four places in Nagpur yesterday and seized some incriminating documents that are being scrutinised, Jain said.

He said the "scam" could be to the tune of Rs 100 crore and was going on since 2012.

Source: PTI