Coal news and updates

Coal scam: CBI registers case against Ispat

The Central Bureau of Investigation has registered yet another case in the coal block allocation scam, this time against Nagpur-based B.S. Ispat for alleged misrepresentation of facts to obtain a coal block in Maharashtra.

The Marki Mangli coal block-I was allocated to the company in 2000. “We have registered a case against the company, its director Mohan Agarwal and others for allegedly indulging in criminal conspiracy and cheating to obtain the coal block. The company furnished false information,” said a CBI official.

The coal block was allocated for captive use in a proposed sponge iron plant of 3 lakh tonnes per annum capacity. “It was also mentioned in the allocation letter that the company would set up a washery, that the washed coal would be used in the plant and the middling would be used in the captive power plant (CPP) to be set up by the company. However, after the allocation, the company promoters disposed of their shares through share-purchase agreement in 2011,” said the official.

According to the agency, it had last year registered a case against Gondwana Ispat Limited, a 100 per cent subsidiary of B.S. Ispat, for alleged misrepresentation of facts while filing the application.

source: http://www.thehindu.com