CBI files fresh case in Coalgate

The Central Bureau of Investigation (CBI) on Monday carried out searches in five cities across India after registering a fresh case against Jharkhand Ispat Private Limited in the alleged coal block allocation scam.

The investigation agency named Ram Chandra Rungta and Ram Swarup Rungta of the RC Rungta group, that promotes Jharkhand Ispat Private Limited, in the First Information Report (FIR).

This is the 10th FIR registered by the CBI as part of its ongoing probe into the coal block allocation matter.

CBI conducted searches in the official premises of the company in Delhi, Kolkata, Ranchi, Hazaribagh and Varanasi. An email sent to the company by Business Standard seeking a comment remained unanswered.

The government had allocated the North Dhadu coal block to Jharkhand Ispat in January 2006. Coal from the block was meant for firing the company's nearby sponge iron plant. But the government, in November last year, deallocated the block due to slow progress on its development.

Besides Jharkhand Ispat, other companies booked by the CBI in the coal scam so far are JAS Infrastructure Capital Pvt Ltd, AMR Iron and Steel Pvt Ltd, JLD Yavatmal Energy Ltd, Navbharat Power Ltd, Vini Iron and Steel Udyog Ltd, Grace Industries Ltd, Vikash Metal and Power Ltd,

Green Infrastructure Ltd and Kamal Sponge Steel and Power Ltd.

The CBI had begun investigating the alleged irregularities in the allocation of coal blocks in September last year. The agency now has three preliminary inquiries going on, covering the allocation of coal blocks from 1993 onwards. It has obtained 700 files running into over 160,000 pages.

The probe had followed a complaint by BJP Member of Parliament (MP) Hansraj Ahir to the Central Vigilance Commission (CVC). The Comptroller and Auditor General of India (CAG) had said, in a report tabled in Parliament in August last year, that the government might have extended undue benefits worth Rs 1.86 lakh crore in the allocation of blocks.