Coal news and updates

Nava Bharat subsidiary to contest ED attachment order in coal block case

The subsidiary of Nava Bharat Ventures Ltd plans to contest the Enforcement Directorate attachment order passed in the coal blocks allocation case against Nava Bharat Projects Ltd.

NBPL, a subsidiary of Nava Bharat Ventures Ltd, held 50 per cent equity in a joint venture company Nava Bharat Power Private Ltd along with Malaxmi Group. It sold the entire stake to Essar Power Ltd in 2010-11 in two tranches.

The CBI had filed a case against NPPL and its promoter directors in September 2012 alleging that they had misrepresented and embellished the net worth for securing a shared coal block in 2008. Subsequently, they sold their stake to Essar Power.

The Enforcement Directorate had filed a case in 2013 and is investigating the matter.

NBPL was represented by P. Trivikram Prasad, Managing Director of NBVL as a non-executive chairman. And the joint venture partner, Y. Harish Chandra Prasad of Malaxmi, had the role of the executive management during the relevant period.

The company said Trivikram Prasad had explained to the CBI and ED that he was not a participant in the developments during the relevant period.

In May 2014, CBI had filed a charge sheet before the Special Judge wherein the court stated that the allegations in the charge sheet were confined to provisions of penal code and not under the Prevention of Corruption Act. Accordingly, it directed that the case be tried by the Chief Metropolitan Magistrate.

The Chief Metropolitan Magistrate passed an interim order observing that piecemeal cognisance of the alleged offences cannot be taken and directed the CBI to file the report by August 20. The company said the charge sheet has not yet been taken into cognisance.

However, the ED has issued a provisional attachment order for 180 days in respect of shares of Nava Bharat Energy worth Rs 147.99 crore, with attachment towards shares worth Rs 138.59 crore. It also attached properties of Malaxmi executive Y Harish Chandra Prasad.

The company in a statement said the subsidiary companies will initiate necessary steps and hope to obtain appropriate relief against the ED action.

Source: The Hindu BusinessLine