Coal scam: CBI files yet another case

August 08, 2014 09:14 pm | Updated November 16, 2021 11:35 pm IST - NEW DELHI:

The Central Bureau of Investigation has registered yet another case in the coal block allocations scam, this time against a Nagpur-based company and its director.

The case of cheating and conspiracy has been registered against Gondwana Ispat Limited and its then director/promoter Ashok Daga in connection with the allocation of Majra coal block during the NDA regime in 2003.

“It has been alleged that then director of said company had requested the Coal Ministry in April 2000 for allocation of coal block, whereas the company was incorporated only in October, 2001,” said a CBI official.

The Coal Ministry allocated the coal block on the assurance from the company that it would install or extend its plant, beside develop the coal block for consumption in the proposed sponge iron plant at Warora in Chandrapur (Maharashtra).

“Despite an affidavit filed to this effect by the director, he allegedly disposed off the equity of the company without any intimation or permission from the Coal Ministry. He entered into an agreement with purchasers without installing the plant and  developing the coal mine. The accused allegedly also received a one-time payment of about Rs.1.55 crore from the buyers,” the official said.

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