Coalgate: Naveen Jindal group misrepresented facts, says CBI

The Naveen Jindal Group had allegedly "misrepresented" facts and was shown favour by the Jharkhand Government which dropped other firms from its recommendation for allocation of coal blocks in the state in 2007, the CBI has said in its FIR filed before a court here in Coalgate.
The FIR is categorical that Ministry of Power was against the proposal for allocating Amarkonda Murgadangal coal block to Jindal Group firms -- Jindal Steel and Power Ltd (JSPL) and Gagan Sponge Iron Pvt Ltd (GSIPL) -- which have been named as accused along with Congress MP Naveen Jindal.
However, former Minister of State for Coal Dasari Narayan Rao, also an accused in the FIR, had written a note to the then Coal Secretary and showed "undue favour" to Jindal's firm which had misrepresented the facts regarding its "preparedness in setting up their proposed end used plant (EUP)".

"Enquiry further revealed that Government of Jharkhand vide its letter dated June 20, 2007 recommended the allocation of Amarkonda Murgadangal coal block to three companies namely (1) M/s Lanco Infratech Ltd (40 per cent), (2) M/s JSPL (30 per cent) and (3) M/s GSIPL (30 per cent).
"However vide its letter dated July 30, 2007, Government of Jharkhand changed its recommendation and recommended the allocation of Amarkonda Murgadangal block to only the two Naveen Jindal Group companies i.E. JSPL (70 per cent) and M/s GSIPL (30 per cent)," the CBI said in its 12th FIR filed till date in the coal blocks allocation scam before the Special CBI Court.

The agency alleged that both SPL and GSIPL misrepresented the facts to the Coal Ministry but the Screening Committee, which used to recommend for allocation of coal blocks to the shortlisted applicant companies, in its meeting held on September 13, 2007, had recommended allocation of Amarkonda Murgadangal coal block jointly to these two firms.
"Enquiry further revealed that both M/s JSPL and M/s GSIPL misrepresented in its application/feed back form on the count of their preparedness in setting up their proposed EUP as well the previous allocation of coal blocks to their group companies," it said.