CBI registers two fresh cases in multi-crore coal scam

Expanding its probe, the CBI today registered two fresh cases against Nagpur-based Central Collieries Company Limited and Prakash Industries here for alleged irregularities in allocation of coal blocks between 2006-09.
Immediately after lodging the cases, CBI conducted searches at various places including the premises of the companies named in the FIR.
In the first case against the Central Collieries Company Limited, its owners, unknown public servants and others, it is alleged that the firm got coal block allocation at Takli Jena Bellora, Chandrapur (Maharashtra) by furnishing false information.
"The company was non existent at the time of allocation," the CBI said in a release.

The firm was allocated coal block in 1998 for captive use of the coal in their proposed power plant. "Though the policy of the government was that the coal blocks would be allocated for captive use only, the mining lease deed executed by the company with the Government of Maharashtra did not incorporate the condition of captive consumption of the coal," it said.
The mine plan was forged which facilitated the non captive use of coal. Mining started since 2000 without setting up of the proposed power plant and the coal extracted from the block was sold in the market. "This led to an alleged misappropriation to the tune of Rs 10 crore," the probe agency said.

The second FIR named Delhi-based Prakash Industries, its promoters and a former member of 35th screening committee and others for alleged irregularities in respect of allocation of Fatehpur Coal Block in Chhattisgarh.

"It is alleged that company had misrepresented on aspect of net worth to get coal block and screening committee deliberately did not follow the guidelines and showed undue favour to the company," it added.
Searches in both cases have been conducted today in Nagpur, Mumbai, Delhi and Chhatisgarh including the office, residential and mines premises.
With the registration of two more cases, the number of cases lodged by CBI to probe alleged misappropriation in coal blocks allocation has gone upto 18.