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Coal blocks allocation scam: CBI registers two more cases

Following a Central Vigilance Commission recommendation, the Central Bureau of Investigation has registered two more cases in connection with alleged irregularities in the allocation of coal blocks.

While the agency has so far registered 21 cases, members of the 35th Screening Committee who approved one of the allocations, have also come under the scanner for purportedly extending “undue favour” to the accused company.

“The first case has been registered against Ranchi-based company Domco (formerly known as Domco Smokeless Fuels) and its promoters/directors for allegedly entering into a conspiracy with unknown persons to submit false information while applying for a coal block,” a CBI official said.

The company was allocated Lalgarh (North) coal block. However, the government later de-allocated the captive coal block after irregularities were detected. “The director of the said company allegedly gained pecuniary benefit of about Rs. 7 crore by selling its shares on a premium, after the allocation,” the official said.

In another case, the CBI booked Vandana Vidyut and its directors/promoters along with the members of the 35th Screening Committee and others for alleged criminal conspiracy, cheating and criminal misconduct and criminal misconduct in obtaining the Fatehpur East Coal Block in Chhattisgarh.

“The company allegedly misrepresented its net-worth to meet the criteria for allocation of the coal block. The Screening Committee deliberately did not follow the guidelines and shown undue favour to the company,” the official added.

On the Supreme Court's directive, the CVC recently reviewed the CBI's findings on several allocations and has recommended registration of 14 regular cases for further investigations.


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Printable version | Sep 20, 2021 12:48:25 PM | https://www.thehindu.com/news/national/coal-blocks-allocation-scam-cbi-registers-two-more-cases/article6245891.ece

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