Companies inflated net worth to bag coal blocks

CBI sources claimed that its probe has shown that Navbharat Power Private Limited had allegedly shown inflated financial strength to bag two coal blocks Rampia and dip side of Rampia in Odisha by entering Memorandum of Understanding for short periods with two different foreign companies at different stages.

At the time of applying for coal blocks, the company had entered into an MoU for 90 days with a Singapore-based company and allegedly inflated its net worth to be over Rs 2,000 crore, sources said.

Later, in its feedback form at the time of presentation, the company allegedly showed an MoU with another global power behemoth with a net worth of Rs one lakh crore to give impression of strong financial credentials to bag the captive coal blocks for power plant, the sources said.

They said although the probe will throw further light, the agency has so far not found any document which could substantiate the claims made by Navbharat.

The sources said the directors of the company, Trivikrama Prasad and Y Harish Chandra Prasad, after getting the coal blocks allegedly sold controlling stake to Essar Power to make windfall gains of over Rs 200 crore.

They clarified no criminal culpability on part of Essar Power has surfaced, so far, as selling of company by the Directors of Navbharat was not a violation of any norm.

They claimed one of the brothers Harish Chandra allegedly sold his personal shares at Rs 50 crore but sold the company shares at very nominal prices at Rs 12 crore while Trivikrama Prasad sold it at nearly 160 crore.

Efforts to reach either of two Directors to seek their reactions did not fructify. More