Coal news and updates

ED attaches property worth Rs 2 crore of former UPA coal minister Dasari Rao

The Enforcement Directorate on Monday attached property worth Rs 2 crore belonging to former union minister of state for coal Dasari Narayan Rao in its money laundering probe in the coal block allocation scam. TOI had first reported a week back that ED is set to attach Rao's properties.

Sources said that the attachment includes Rs 50 lakh cash in a bank account, a plot in Hyderabad and two luxury cars - a Mercedez Benz and a Land Cruiser. ED suspects that these properties were bought by Rao using alleged bribe money.

The investigation relates to allocation of Amarkonda Murgadangal coal block at Birbhum in Jharkhand to JSPL and Gagan Sponge Iron Private Limited where Rao, while being the minister, allegedly favoured Jindal's company. It is suspected that Rs 2.25 crore was transferred to Rao's company Saubhagya Media Limited in the form of share purchases by a Jindal group company.

Sources say that attachment of more properties is likely soon. The ED had also examined Rao in connection with the case apart from other coal scam cases it is investigating. ED probed the money laundering on the basis of CBI FIRs in the coal scam.

According to the CBI FIR, JSPL and Gagan Sponge Iron Ltd (also belonging to Jindal) had bagged Amarkonda Murgadangal coal block in Jharkhand in 2008 through alleged misrepresentation of facts when Rao was minister of state for coal. The agency had claimed that Rao was bribed to favour the company and Rao, in turn, had pressured the screening committee. CBI's FIR was shared with ED last year after which the latter registered a money laundering case.

After registration of the case, JSPL had said, "JSPL, as a law abiding company, is governed by a strong ethical code of conduct. This is an ongoing CBI investigation into coal block allocation. At this stage of investigation, JSPL is committed to fully cooperate with CBI."

Earlier, ED had attached properties worth Rs 181 crore in another coal scam case related to Navbharat Power Private Limited.

sources: http://timesofindia.indiatimes.com