Nava Bharat group blames Malaxmi for coal block sale

Hyderabad-based Nava Bharat Ventures Limited, in a filing to the BSE on Wednesday, said its partner in the 50:50 joint venture Navabharat Power Private Limited (NPPL) was responsible for grant of coal block in Odhisa and its (JV) subsequent sale to the Essar group.

It has clarified that no one from the Nava Bharat group had participated in the day-to-day affairs of NPPL nor made any misrepresentation to any authority in any manner from the time of its participation till its exit from NPPL.

The CBI yesterday filed an FIR against NPPL along with Nava Bharat group managing director Trivikrama Prasad and Malaxmi group promoter Y Harish Chandra Prasad in the ongoing investigation into alleged irregularities in coal block allocations.

“It may be noted that the active management of NPPL, including the pursuit of the coal block at relevant time, was with the managing director of NPPL, who was from Malaxmi Group, the other investor of NPPL,” the company said.

Navabharat Ventures also accused its partner for circumstances leading to sale of its stake in NPPL. The company said it had to exit NPPL by selling its 50 per cent stake as the Malaxmi Group sold its interest to Essar Power Limited in total disregard to its partner.

The company maintained that the said equity divestment was due to exigencies beyond their control and was in the best interest of its shareholders.

When contacted, Harish Chandra Prasad, promoter of Malaxmi, denied the charges.

“I had to exit the company (NPPL) because the Nava Bharat group did not take any interest in developing the project,” he told Business Standard.

Prasad said just because he had sold his stake to Essar Power, this was no reason for the Nava Bharat group to sell its stake in NPPL.