Coal news and updates

Coal scam: CBI files chargesheet against Pushp Steels

The CBI on Wednesday filed a charge sheet in a special court in connection with the alleged irregularities in allocation of a coal block in Chhatisgarh to Delhi-based firm Pushp Steels and Mining Pvt Ltd.

The charge sheet was filed before special CBI judge Bharat Parashar who fixed 28 May for its consideration.

"Fresh charge sheet has been filed. It be checked and registered. However, Investigating Officer has been directed to prepare a copy of relevant documents before the matter is further considered. Accordingly put up for consideration on May 28," the judge said.

The CBI had lodged an FIR against Pushp Steels and Mining Pvt Ltd and others in April 2013 alleging that the firm had misrepresented facts while applying for coal block.

The agency had conducted searches at various places in Delhi, Ghaziabad and Raipur in Chhattisgarh at the offices and factory of the firm as well as the residential premises of its Directors Atul Jain and Sanjay Jain.

It had alleged that the company got mining lease on the basis of recommendation from Chhattisgarh Government despite having no experience and lacking enough capital required for starting mining operations.

The charge sheet was filed for alleged offences under section 120-B (criminal conspiracy) read with section 409 (criminal breach of trust by public servant) of the IPC and under relevant provisions of the Prevention of Corruption Act.

The firm was alloted Brahmapuri coal blocks in Chhatisgarh on the recommendation by the Screening Committee for its proposed Sponge Iron End Use Project in Durg district.

The CBI had earlier claimed that allocation of Brahmapuri coal block was done on the basis of alleged false information that it had a Iron Ore Mining Lease when it had none.

"It was further alleged that the company did not have any experience in steel manufacturing and the net worth of the group companies/firms was around Rs 3.01 crores which was insignificant," its had earlier said.

Source: PTI