Gondwana Ispat Ltd, director convicted in coal scam case

A special court here today held Gondwana Ispat Ltd and its director guilty of cheating and criminal conspiracy to get the Majra coal block in Maharashtra allocated to it during the UPA rule.

The allocation of the coal block was quashed by the Supreme Court in 2014.

Special CBI Judge Bharat Parashar, who was appointed exclusively to deal with the coal scam cases, directed that the firm's director Ashok Daga be taken into custody.

The court held the company and Daga guilty of hatching a criminal conspiracy and cheating under sections 120-B and 420 of the IPC.

The court will pronounce its order on the quantum of sentence on May 1.

It today heard the arguments of the CBI and the accused on the quantum of sentence. The agency sought maximum punishment for them, and the accused pleaded for leniency.

"In my opinion, the CBI has been clearly successful in proving the offence of criminal conspiracy i.e., u/s 120-B/420 IPC against A-1 M/s Gondwana Ispat Ltd (GIL) and A-2 Ashok Daga, and I accordingly hold them guilty for the said offence and accordingly convict them thereunder," the judge said.

The court said, "In 2003, both of you (accused), in furtherance of the common object of the criminal conspiracy hatched between you both... with a view to procure allocation of the Majra coal block in favour of GIL, made false submission before the 18th Screening Committee about financial tie up with financial institutions and tie up for supply of iron ore from Orissa and thereby both of you committed the offence of cheating punishable under Section 420 of the IPC."