CBI to quiz Jindal today

The agency found that Jindal group companies bought shares in Saubhagya Media at inflated rate of Rs 100 per share

The Central Bureau of Investigation (CBI) might question Lok Sabha member Naveen Jindal on Friday in connection with the coal block allocation scam. The CBI sent a summon to Jindal last week to appear before the agency. Jindal, former minister of state for coal Dasari Narayan Rao, and five private companies have been accused of cheating, criminal conspiracy and misconduct in getting the Amarkonda Murgadangal coal block in Jharkhand.

In another development, the Supreme Court on Thursday questioned mineral-rich Maharashtra, West Bengal, Jharkhand, Chhattisgarh, Madhya Pradesh, Andhra Pradesh and Odisha on their understanding of the coal block allocation policy.

Scam, asking them about their involvement in the allocation of blocks.

The apex court put four questions to the governments of Maharashtra, West Bengal, Jharkhand, Chhattisgarh, Madhya Pradesh, Andhra Pradesh and Odisha.

CBI investigations indicated Jindal Steel and Power and Gagan Sponge Iron misrepresented facts and gave wrong information about the company’s land, water supply and previous allocations to get the coal block in January 2008. Jindal was the signatory to all documents given to the coal ministry. The agency found Jindal Group’s companies bought shares in Rao-owned Saubhagya Media at an inflated rate of Rs 100 a share when the quoted price was just Rs 28 a share, which raised its suspicion.

The questions are: how did they understand the allocation policy of the central government?; what were their individual roles in the allocations?; What were the steps subsequently taken after the allocations in accordance with the provisions of the Mines and Minerals (Development and Regulations) Act?; and, what are the details of the agreements entered into by the state public sector undertakings with private companies on the blocks allocated to them?

The court has been hearing two public interest petitions regarding the coal scam for over two weeks. The Bench headed by Justice R M Lodha is examining whether the Centre followed any policy at all amid allegations that the allocations were made to a few favourite firms.

The petitioners, lawyer Manohar Lal Sharma and Common Cause, have alleged gross irregularities in the allocations and sought their cancellations as they were made to chosen firms without any criteria for qualifications. Attorney General G E Vahanvati has been valiantly defending the allocations for the past few days.