Coal news and updates

ED to probe money trail in five coal block cases

The CBI has handed over five coal block allocation cases to the Enforcement Directorate for a probe into the money trail under the Prevention of Money Laundering Act and the Foreign Exchange Management Act.

A case recently registered against Castron Technologies has been taken up by the ED. The CBI has accused Kolkata-based company of having obtained a Brahmadih coal block in Jharkhand in 1999, during the NDA regime, without a specific purpose.

According to the FIR, the company got the block sanctioned in conspiracy with some public servants, who overlooked the fact that it had not identified any specific purpose for the allocation.

CBI cases against Rathi Steel and Power Limited, which was allocated a Kesla North block in Chhattisgarh in 2008, Jharkhand Ispat Private Limited, which was allotted North Dhadu block in January 2006, and Chhattisgarh-based Pushp Steel and Mining Private Limited were also sent to the ED for further probe investigation into financial aspects.

Yet another case now being probed by the ED is against former Minister of State for Coal Dasari Narayana Rao, Jindal Steel and Power Limited (JSPL) director Naveen Jindal and unknown members of the screening committee for alleged irregularities in the joint allocation of the Amarkonda Murgadangal block at Birbhum in Jharkhand to JSPL and Gagan Sponge Iron Private Limited in 2008.

Source: The Hindu