A day after CBI registered case against Electrosteel Castings and a group firm, the pipe—maker today said the sale of middlings and coal from Prabatpur coal block had regulatory approvals.
“Electrosteel Castings informs all concerns that sale of middlings and sale of inferior ungraded coal, jhama and slurry has been made after obtaining regulatory approvals from the respective sanctioning authority...,” the Kolkata-based company said in a BSE filing.
The sale of coal from the Prabatpur mine to Electrosteel Steels was also approved by an order of the Jharkhand High Court.
“This is also in line with conditions stated in the lease granted to Electrosteel Castings wherein it is stated that 80 per cent of coal should be used in Jharkhand,” it said.
Electrosteel Castings said that it, along with group firm Electrosteel Steels, did not violate the law of land and each and every action was supported with strong legal opinion, court orders, sanction letters from Ministry of Coal.
Electrosteel Steels has a 2.5 million tonnes per annum integrated steel plant at Bokaro in Jharkhand.
The CBI has alleged that Electrosteel Castings sold 50,162.42 tonnes of middlings dishonestly to another private company based in Jharkhand and disposed 42,500 tonnes of inferior ungraded coal, jhama and slurry to non-approved end-users.
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