Coal scam: GSIPL's directors refute CBI's allegations

Two directors of Gagan Sponge Iron Pvt Ltd (GSIPL), accused in a coal block allocation case along with former MP Naveen Jindal and others, today argued before a special court that there was no misrepresentation of facts and they were not involved in any conspiracy as alleged by CBI.
Refuting CBI's allegations, directors of GSIPL -- Girish Kumar Suneja and Radha Krishna Saraf -- claimed the agency has failed to bring any incriminating material which could suggest there was any conspiracy or meeting of minds to commit any illegal act.
"There is a total absence of any incriminating material. There is nothing which could suggest there was knowledge to commit any illegal thing by Suneja and Saraf," senior advocate Mohit Mathur, representing both the accused, told Special CBI Judge Bharat Parashar.

He further said, "There is no material which could connect these two with others. There is nothing on record which suggests meeting of minds. CBI should show to the court if any such material is there or not."
The defence counsel also argued that there was no misrepresentation of facts, as alleged by CBI in its charge sheet, and these accused were nowhere involved in any sort of alleged conspiracy.
Similarly, senior advocate Ramesh Gupta, who appeared for Jindal Realty Pvt Ltd (JRPL) and its director Rajeev Jain, refuted CBI's allegation on transfer of Rs two crore from JRPL to New Delhi Exim Pvt Ltd, claiming it was purely a business transaction.

"The transfer of Rs two crore from JRPL to New Delhi Exim Pvt Ltd was lawful. It was extended as loan to New Delhi Exim Pvt Ltd and it was returned with interest. Extending loan is not illegal at all," he said.

The arguments on framing of charges in the case would continue tomorrow.
The case pertains to alleged irregularities in allocation of Amarkonda Murgadangal coal block in Jharkhand to two Jindal Group firms -- Jindal Steel and Power Ltd (JSPL) and GSIPL.
CBI has chargesheeted 15 accused, including Naveen Jindal, former Minister of State for Coal Dasari Narayan Rao, former Jharkhand Chief Minister Madhu Koda and ex-Coal Secretary H C Gupta, in the case.

During the arguments, the defence counsel told the court
that although the loan extended to New Delhi Exim Pvt Ltd was returned to JRPL with interest, the CBI has not mentioned this fact in its charge sheet.
In its charge sheet, the agency has alleged that New Delhi Exim Pvt Ltd had invested Rs two crore received from JRPL in M/s Sowbhagya Media Ltd, which was allegedly promoted by Dasari Narayan Rao.
CBI has alleged that the firm promoted by Rao had received the payment of Rs two crore from Naveen Jindal in return for undue favour shown by him in allocation of the coal block to Jindal Group of companies.

CBI had earlier told the court that Jindal, Rao, Koda and Gupta had conspired with others to get the coal block allocated in favour of the two firms.
The other accused in the case are Suresh Singhal, Director of New Delhi Exim Pvt Ltd, K Ramakrishna Prasad, Managing Director of Sowbhagya Media Ltd and chartered accountant Gyan Swaroop Garg. All these accused are currently out on bail.
Besides the ten accused, five firms -- JSPL, Jindal Realty Pvt Ltd, Gagan Infraenergy Ltd (formerly known as GSIPL), Sowbhagya Media Ltd and New Delhi Exim Pvt Ltd -- are also accused in the case.