Coal scam: CBI quizzes Nava Bharat Power directors

Updated - November 16, 2021 09:46 pm IST

Published - November 07, 2012 03:06 pm IST - New Delhi

The CBI on Wednesday questioned two directors of Hyderabad-based Nava Bharat Power Private Limited in connection with alleged misrepresentation of facts by it while applying for a coal block.

CBI sources said promoters and directors of the company — Y. Harish Chandra Prasad and P. Trivikrama Prasad were called to the agency headquarters in New Delhi for questioning.

They said the duo would be asked about the claims made by them about the net worth of the company while applying for coal block in 2006. The company was allocated Rampia and Dipside of Rampia coal block in 2008.

The CBI had booked the company and the directors for alleged cheating and provisions of the Prevention of Corruption Act.

The agency has alleged in the FIR that the company, in order to claim a coal block inflated its net worth, an important criteria for determining eligibility of a firm, to nearly Rs. 2,000 crore by claiming they were supported by companies without having any legal basis for such a claim, the sources said.

The CBI alleged that the Coal Ministry had kept a minimum net worth of Rs. 50 lakh per mega watt of the maximum capacity of the proposed power plant as a pre-qualification criteria for applicant companies, they said.

The FIR alleged that the company with a proposed capacity of 2240 mega watt would not have pre-qualified for the recommendation of the Ministry of Power but for this deception.

The CBI also alleged that promoters of the company sold their stake to Essar Power and its subsidiary company at huge profit of Rs. 200 crore.

Essar Power had rejected the allegations, saying its acquisition of Nava Bharat Power Pvt Ltd (NPPL) was .“transparent” and NPPL was never its front company.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.