CBI undecided on filing chargesheet against Jindal

A CBI court had questioned the agency asking why it was in a hurry to file a closure report

This article has been modified. Please see the correction at the bottom.

About a year after a case was registered against Jindal Steel & Power Ltd (JSPL) and its Chairman Naveen Jindal in the coal block allocation scam, the Central Bureau of Investigation (CBI) is undecided on the course of action in the matter.

Sources said the investigative agency was yet to decide on whether the evidence found against Jindal was sufficient to file a chargesheet against the industrialist, alleged to have routed Rs 2.25 crore of kickbacks through his firms to a company owned by Dasari Narayana Rao, former minister of state for coal. The case pertains to an alleged conspiracy in securing a coal block in Jharkhand.

“At the moment, we are not sure in which direction the case will head,” said a CBI official. Ranjit Sinha, the agency’s director, declined to comment.

After the CBI closed a case related to industrialist Kumar Mangalam Birla in the coal scam, a CBI court had questioned the agency on the matter, asking why it was in a hurry to file a closure report.

In June last year, the agency had carried out raids and registered a First Information Report (FIR) against Jindal and Rao for cheating, criminal conspiracy and misconduct in securing the Amarkonda Murgadangal coal block in Jharkhand in 2008. Five private companies were also named in the FIR.

The CBI had questioned Jindal in September 2013.

The investigative agency alleged to secure the coal block, JSPL and Gagan Sponge Iron (another company owned by Jindal) had misrepresented facts and allegedly given wrong information about the company’s land, water supply and previous allocations.

Investigations revealed the Jindal group companies had bought shares of Saubhagya Media, a company owned by Rao, at Rs 100 apiece, against the quoted price of Rs 28. The probe also established a money trail that showed kickbacks of Rs 2.25 crore received by Saubhagya Media from New Delhi Exim Pvt Ltd and Jindal Group firms — JSPL, Gagan Sponge and Jindal Realty.

WAIT CONTINUES

• Naveen Jindal allegedly routed Rs 2.25 crore of kickbacks through his firms to a company owned by Dasari Narayana Rao, former minister of state for coal
   
• Jindal group companies had bought shares of Saubhagya Media, a company owned by Rao, at Rs 100 apiece, against the quoted price of Rs 28
   
• Probe also points a money trail that showed kickbacks of Rs 2.25 crore received by Saubhagya Media from Jindal Group firms

CORRECTION:

Earlier version spoke about Supreme Court asking the CBI why it wanted to file in a hurry a closure report in the case, actually it was a CBI court indeed that had criticised the agency.

We had incorrectly described New Delhi Exim Pvt Ltd as a Jindal group firm. We regret the error. Jindal Steel & Power Ltd has also clarified that the unsecured loan of Rs 2.25 crore that Jindal Realty Pvt Ltd had given to New Delhi Exim Pvt Ltd (mentioned in the CBI FIR filed on June 11, 2013) has been duly returned.