CBI registers case against Nagpur Company for alleged misuse of allotted Coal block

The Central Bureau of Investigation (CBI) has registered a case against a Nagpur based private company and other unknown public servants for alleged irregularities in misappropriating the usage of the Coal Block allocated to the company.

The case was registered under U/s 120-B r/w 406 of IPC and 13 (2) r/w 13 (1) (d) of PC Act and is the outcome of a preliminary enquiry registered on September 26, 2012 for looking into allocations of coal blocks during the period 1993-2005.

It has been alleged that 'Gare Palma IV/4' coal block was allocated to a private company of Nagpur for their sponge iron plant (SIP) stipulating inter-alia that the party will wash the coal in a washery to a 20 percent ash level and the middling produced will be used in the Sponge Iron Plant.

However, the Company resorted to excess mining of coal from 2007-08 and used it for the Captive Power Plant (CPP) in violation of the lease agreement. Though the same was in the knowledge of Coal Controller and State Government authorities, but no action was taken by them.

Despite clear stipulation that no coal mined shall be sold, delivered or disposed of, except for consumption in the proposed Sponge Iron Plant (SIP) of the applicant company, the company allegedly resorted to illegal use of coal mined from 'Gare Palma IV/4' coal block directly in their Captive Power Plant (CPP), without any permission from the Central Government.

Searches have been conducted at four locations at Nagpur (Maharashtra), Raipur and Raigarh Districts (Chhattisgarh).