CBI registers 20th FIR in coal scam; Jayaswal Neco named

May 24 2014, 01:53 IST
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SummaryAgency teams carried out coordinated searches at the firm's office in Nagpur, two places in Raipur and one place in Raigad, they said.

CBI has registered a fresh FIR in the allocation of coal blocks scam against Nagpur-based Jayaswal Neco Industries and unknown public servants for allegedly mining coal in excess to prescribed limit and diverting it.

CBI sources said the case against the company has been registered for alleged criminal conspiracy, criminal breach of trust and under provisions of Prevention of Corruption Act.

Agency teams carried out coordinated searches at the firm's office in Nagpur, two places in Raipur and one place in Raigad, they said.

The agency has registered the FIR as an offshoot of its preliminary enquiry into the allocation of coal blocks during the period 1993-2005.

The Gare Palma IV/4 coal block in Mand Raigarh, Chhattisgarh was allocated to the company in August, 1999 for their sponge iron plant stipulating that the party will wash the coal in a washery to a 20 per cent ash level and the middling produced by washing non-coking coal for its sponge iron plant will be used in its captive power plant.

It is alleged that the company resorted to excess mining of nearly 5.6 lakh MT coal since 2007-08 and onwards without obtaining prior permission from Central Government. CBI sources said the company was allowed to mine about 15.6 lakh MT coal whereas it mined 21.2 Lakh MT of coal.

The agency alleged that company intimated excess coal production to Coal Controller and state government authorities but no action was taken by them.

CBI sources said the company has so far only 0.255 MTPA capacity sponge iron plant instead of one MTPA as claimed by the company at the time of applying and despite that Coal Ministry approved revised mine plan, increasing the rated capacity of the mine from 0.48 MTPA to one MTPA.

The agency alleged that conditions stipulated that no coal mined from the block shall be sold, delivered or disposed of except for the stated captive mining purpose which was for the consumption in sponge iron plant.

CBI alleged there has been no washery set up by the company and the coal is being directly used in their sponge iron plant and resorted to illegal use in captive power plant, without any approval for its use in power plant obtaining undue pecuniary benefit by the illegal acts.

It alleged that initial estimates of coal reserves were at 125 million tonnes in the mine, the detailed exploration carried out by

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