CBI qizzes Tata Steel exec in Koda mining scam

CBI sources said the Partha Sengupta, Vice-president (Raw Materials) of Tata Steel was questioned yesterday in Jamshedpur

The Central Bureau of Investigation (CBI) has questioned Partha Sengupta, a senior executive of Tata Steel Ltd, in connection with a mining scam allegedly involving Madhu Koda, former chief minister of Jharkhand.

The agency questioned Sengupta on Wednesday in Jamshedpur. When contacted, sources in CBI confirmed this, but did not give any details on the line of questioning.

Sengupta is the vice-president (raw materials), a key division for Tata Steel.

A Tata Steel spokesperson said: "It’s not for us to comment on the investigating agency's line of questioning. We are cooperating with the authority in the ongoing inquiry process. Tata Steel neither sought nor received any undue benefits from former Jharkhand chief minister Madhu Koda. Tata Steel was not awarded any new mining licences nor were any existing licences renewed during Koda’s tenure.”

Tata Steel's name in connection with the mining scam had surfaced in 2010. It was alleged by investigative agencies that Koda took bribes for allotting mines in Jharkhand when he was the chief minister. Koda  is in jail since November 2009 for alleged money laundering and illegal investments.

A phone intercept of corporate lobbyist Niira Radia had suggested Koda had allegedly asked for Rs 180 crore pay-off for extending lease of one of the Tata mines. However, Tata Steel and the now closed Vaishnavi, its corporate communication agency, had then strongly denied the contents of the tapes and had said no lease was granted during Koda's tenure. The Tatas had said that at that time, they were in fact overlooked while allotments were made by Koda. Sengupta is believed to be among the candidates being considered for the top job at Tata Steel after the retirement of  H M Nerurkar, the current managing director, in October.

There is also speculation that the company could opt for a structure, where the managing director would be based in Mumbai and there could be two chief executive officers (CEO) for Jharkhand and Orissa operations. In such a scenario, Sengupta could be the CEO for the Jharkhand operations.