CBI registers fresh FIR against Jindal Steel

Shishir Sinha Updated - March 12, 2018 at 06:35 PM.

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The Central Bureau of Investigation on Sunday filed an FIR (first Information Report) against Jindal Steel and Power Ltd (JSPL) in the coal block allocation case.

According to the CBI, an FIR has been filed in connection with the allocation of the Gare Palma IV/1 coal block in Chhattisgarh to Jindal Strips Ltd, which is now known as JSPL (post a demerger in 2002-03). Besides the company, the FIR also included “unknown public servants under Sections 120 B, 409 and 420 of the Indian Penal Code (IPC) and Sections 13(1)(C) and 13(1)(D) of the Prevention of Corruption Act”. This is the 36th FIR in the coal case.

A senior CBI official said the allegations pertain to irregular mining (beyond the approved area), excess coal mining, sale of coal, sale of coal fines and rejects, and irregular consumption of coal in new extension plants. The investigating agency is conducting searches at four places at Raigarh in Chhattisgarh.

Irregularities alleged
Almost a year ago, the CBI had questioned JSPL Chairman and former Congress Member of Parliament Navin Jindal in a matter related to alleged irregularities in the joint allocation of the Amarkonda Murgadangal coal block in Birbhum, Jharkhand, to JSPL and Gagan Sponge Iron Pvt Ltd. Jindal is a stakeholder in the sponge firm.

The enquiry took place after the agency registered an FIR against Jindal and former Minister of State for Coal, Dasari Narayana Rao. The CBI alleged that Rao received ₹2.25 crore camouflaged as investment from one of Jindal’s firms within a year of allocating the coal block.

The fresh FIR comes days after the Supreme Court quashed allocation of 214 out of 218 coal blocks to various companies since 1993, and in which it was claimed that around ₹2 lakh crore was invested.

It is sheer co-incidence that the CBI announced the registration of the FIR on the day election results were announced in Maharashtra and Haryana. JSPL’s Chairperson Emeritus Savitri Jindal, mother of Chairman Navin Jindal, lost the Hisar seat to the BJP candidate by a margin of over 13,600 votes. This is the second setback to the Jindal family this year as two-time Congress MP Naveen Jindal lost the Lok Sabha elections from Kurukshetra in Haryana in May.

Meanwhile, a JSPL spokesperson said: “JSPL reiterates that all its actions are in keeping with the legal framework of the country and it complies with the law in letter and in spirit. JSPL continues to cooperate with all the authorities in a responsive manner.”

Published on October 19, 2014 07:26