JSPL tanks 6% as CBI chargesheets chairman Naveen Jindal in coal scam

Shares of Jindal Steel and Power Limited (JSPL) slipped around 6% in morning trade on Thursday on the National Stock Exchange (NSE) to Rs 137, after the Central Bureau of Investigation (CBI) chargesheeted its chairman, Naveen Jindal, for an alleged conspiracy in securing a coal block in Jharkhand.

Another company owned by Jindal, Gagan Sponge, has also been named in the chargesheet. Besides Jindal, Madhu Koda, former minister of state for coal Dasari Narayan Rao, former coal secretary H C Gupta are among others that have been named in the CBI’s chargesheet.

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CNX Metal index was among the top losers on the NSE, slipping 0.7% in morning trade. Besides JSPL, NMDC, JSW Steel, Coal India, Tata Steel, SAIL and Hindalco also slipped 0.5% - 1.1%.

Reacting to the development that happened post market hours on Wednesday, JSPL stated in an official statement the said allocation was made to the company on merits. During the course of the investigation the company and its officials fully co-operated with the authorities, and whenever asked, explained and provided all the supporting documents.

“We deny all allegations made against our company and its management. We will be availing appropriate remedy in accordance with law. We have full faith in our judiciary and are confident to come out clean during the process,” the statement said.