Coalgate: People with Congress, BJP links got mines

Coalgate: People with Congress, BJP links got mines

New Delhi: The Central Bureau of Investigation (CBI), which is probing into the alleged coal blocks allocation scam, is ready with the first FIR in connection with the case which is likely to be filed soon. The agency is, in fact, likely to file five to six FIRs in the case quite soon.

Details of the FIR exclusively accessed by CNN-IBN from CBI sources show how mine owners with political connections were favoured in the coal mine allocations.

According to the FIR, some of the companies got mines only to sell stakes at a premium later. The CBI investigation has also shown how the screening committee meetings were a sham.

The investigation has also revealed that in one case, as many as 100 companies applied and only two were called. There is no explanation on why others were not called.

CBI sources have also said that they have all the documents from the Coal Ministry on recommendations made by leaders from the Congress, the Bharatiya Janata Party (BJP) and other parties, and that merit was not the criteria in many allocations.

However, though some politicians are under the scanner, they are unlikely to be named in the FIRs.

Among the companies who benefited from the coal blocks allocation is Nav Bharat Coal Fields Ltd of Chhattisgarh which was allotted the Madanpur North Block for a sponge iron plant. During the allocation, they did not disclose that they did not have a sponge iron plant in the state and sold 74 per cent stake to Nagpur-based Solar Explosives Ltd.

The promoter of the firm is VK Singh, whose wife Nina Singh contested elections on a BJP ticket.

Another company, SKS Ispat of Madhya Pradesh also benefited from the allocation. It was allotted the Rawanwara Power Plant in Chindwara. Despite not showing any progress in the project, it got two more projects. The company is linked to Union Minister and Congress leader Subodh Kant Sahay.

Another company from Chhattisgarh, Pushp Steel and Mining, was owned by Delhi-based brothers Atul Jain and Sanjay Jain. The brother pooled Rs 1 lakh in June 2004 and applied for a coal block.

Even while they did not have any experience of finance, they were allowed by the Chhattisgarh government to mine from day one.

The role of bureaucrats and real people behind Jain brothers is under probe. The Jain brothers later also made attempt to sell the mine to make windfall gains.

From Jharkhand, a company called Vimmi Iron and Steel Udyog, which is linked to former chief minister Madhu Koda is also facing CBI allegations of getting two mines using Koda links.

The role of officials from Jharkhand is also under scanner over another Jharkhand firm, GVK Powers, the project of which was delayed by three years.

Meanwhile, NSL Powers and Infratech Ltd of Rajasthan is also under scanner in connection with the allocation. The CBI is probing the role of Rajasthan government and company executives. While the mine was allotted for power plant, they did not respond to the question by Coal Ministry on the delay.

Under the scanner of the investigating agency is JLD Yawatmal led consortium of Chhattisgarh which was allotted the Fatehpur east coal block.