CBI closes case against JLD Infra in coal scam

The investigating agency has so far registered 18 FIRs in coal block scam

The Central Bureau of Investigation (CBI) has filed a closure report in two coal block allocation cases, giving a clean chit to Congress member of Parliament Vijay Darda and his company JLD Yavatmal Energy Limited and Jas Infrastructure Capital, “due to lack of prosecutable evidence”.

CBI called former minister of state for coal Dasari Narayana Rao for questioning in connection with his alleged role in the coal allocation to Hindalco and Jindal Steel and Power. Rao was named in the first information report (FIR) linked to allocation of the Amarkonda-Murgadangal coal block to Jindal Steel and Power and Gagan Sponge and Iron.

Hindalco has denied allegations of irregularities. “We wish to state unambiguously that we have followed every process required for allocation of coal completely, as stipulated by the government policy,” it had stated.

CBI has so far registered 18 FIRs in the scam. Of these, it has closed three cases — Vikash Steel and Kamal Sponge earlier and now JLD and Jas. It has filed two chargesheets, against Navabharat Power and AMR Iron and Steel.

CBI had registered an FIR against JLD Yavatmal Energy and Jas Infrastructure Capital in September 2012, based on its preliminary inquiry on charges of criminal conspiracy and cheating. The agency had found that Kolkata-based Jas Infra, Nagpur-based AMR and JLD Yavatmal belonged to the same promoter. While applying for the coal blocks, they falsely declined to have located any coal block earlier and also forged the figures to inflate their net worth.

The agency had alleged in its FIR that the companies signed a memorandum of understanding for short durations only to add other companies’ equity in order to increase their financial strength. The agency also found that these firms had not done any mining work in the blocks allocated to them. However, even after probing the case for 18 months, the CBI could not substantiate its allegations and closed the case.

During the previous hearing in the Supreme Court, the CBI had sought more time to finish its probe in two more coal scam cases in the last hearing. The agency had also submitted a list of 20 cases still in preliminary investigation stage where there is a difference of opinion between the investigative officers and top CBI officials.