Coal news and updates

The special court hearing the coal scam cases sentenced the father-son duo Pradip Rathi and Udit Rathi, promoters of Rathi Steel Pvt Ltd., to three years imprisonment on Wednesday. The special court also sentenced Kushal Aggarwal, the assistent general manager of Rathi Steel to two years in prison. In a procedural move, the court later granted bail to all three officials on grounds that they will now appeal against the sentence in a high court.

 

The court has asked Rathi Steel to submit a fine of Rs 50 lakh. Udit Rathi has been asked to pay Rs 50 lakh and Pradip Rathi Rs 25 lakh. Kushal Aggarwal has been asked to deposit Rs 5 lakh.

 

 

Senior Public Prosecutor VK Singh argued there is no room for leniency and the court should proceed with the maximum sentence provided under the law. He alleged that convicted tried to influence the court during trial.

 

Rathi Steel promoters had requested for minimum sentence, citing ‘exemplary conduct’ during trial. Lawyers for Rathi Steel told the court that they will challenge the order.

 

 

The case relates to irregularities in allocation of Kesla North Coal Block in Chhattisgarh to Rathi Steel.

 

Central Bureau of Investigation alleged that Rathi Steel and its promoters “misrepresented” facts to acquire the coal block. CBI said in its chargesheet that the company made false claims before the 36th screening committee regarding acquisition of 250 acres of land.

 

CBI chargesheeted Rathi Steel and its promoters for alleged offences of cheating and criminal conspiracy to acquire the coal block.

 

The investigative agency registered an FIR against the company and its officials in 2013.

 

This is the second conviction after Jharkhand Ispat and the its promoters RC and RS Rungta were convicted in March this year. The special court has convicted the company and its officials under charges of cheating and criminal conspiracy.

Source: Hellenic Shipping