CBI registers case against BS Ispat

A fresh case in the coal scam has been registered by CBI against Nagpur-based BS Ispat for alleged misrepresentation of facts while applying for a coal block in Wardha in Maharashtra, allocated to the company during the National Democratic Alliance government in 2001.

CBI sources said the case against BS Ispat and its director Mohan Agarwal has been registered under Indian Penal Code sections pertaining to criminal conspiracy and cheating in the allocation of Marki Mangli Coal Block-I to it.

“It has been alleged that the Nagpur-based private firm had submitted false information on existence of the company while submitting the application and also during processing of the application for allocation of the coal block. The false information was allegedly submitted by its director,” the CBI spokesperson said.

After registering the 40th FIR in the coal scam, the agency carried out searches at the residence of Agarwal, corporate office in Nagpur, factory office in Chandrapur and mines office of the company in Yavatmal.

"The coal block was allocated for captive use in the proposed Sponge Iron Plant (SIP) of three lakh tonnes per annum capacity. It was also mentioned in the allocation letter that the company would set up a washery and washed coal would be used in the SIP and the middling would be used in the Captive Power Plant (CPP) to be set up by the company," the spokesperson said about the allegations against the company.

She said it has also been alleged that the promoters of the company after getting the allocation of the coal block, disposed off their shares through Share Purchase Agreement in 2011.

CBI had last year registered a case against 100 per cent subsidiary of BS Ispat, Gondwana Ispat Limited, and its promoter and director Ashok Daga regarding alleged misrepresentation of facts.

CBI sources said the case is under progress.