CBI registers 2 new FIRs, raids in coal scam

CBI registers 2 new FIRs, raids in coal scam

FIRs are registered against Grace Industries Limited & Vikash Metals and Power Limited in ongoing coal scam investigation

The Central Bureau of Investigation (CBI) has registered two new FIRs against Nagpur based Grace Industries Limited and Kolkata based Vikash Metals and Power Limited in the ongoing coal scam investigation case. Investigators carried out simultaneous raids in 7 cities, including Nagpur, Purulia and Aasansol, and at 13 places.

This is the second such raid by the agency which had registered five cases on September 4 against JLD Yavatmal, JAS Infrastructure, AMR Iron and Steel, Vini Iron and Steel and Navbharat Power on charges of misrepresentation of facts and criminal conspiracy. CBI investigations reveal that these companies had not provided complete details before the screening committee to get undue advantage in the allocation of coal blocks.

CBI investigators have found in the probe that directors of Grace Industries Limited had made false claims before the screening committee related to net worth of the company and capacity of the end use plant. While Vikash Metals and Power Limited has been also accused of making false claims related to land allocation to get undue advantage in the coal block allocation.

“Grace Industries changed its ownership structure after the company was allocated Lohara (East) block in Maharashtra in 2008. The company had claimed that its net worth was Rs.120 crore but investigation revealed that it was actually Rs.3.3 crore. The company had also claimed the capacity of end use plant as 120,000 tonne per annum (TPA) while the capacity was actually 60,000 TPA,” said a senior CBI official.
Investigations have also revealed that Directors of Grace Industries Limited, Mukesh Gupta and Seema Gupta, had sold their stake to Sanvijaya company, a Nagpur based company. The CBI has found that after the stake was sold, Seema and Mukesh Gupta had made a profit of Rs. 20 crore.
CBI officials elaborated that Vikash Metals and Power Limited wrongly claimed that it had been allocated 300 acre of land in Begusarai in Bihar by the Bihar Area Development Authority but CBI has found that the land was de-allocated but the Directors of the company failed to inform the screening committee members. CBI has found that Vikash Metals and Power Limited were given Maurya Madhujore (North and South) block in 2009.
Senior officials have booked the Directors of Grace Industries Limited, Mukesh Gupta and Seema Gupta, under section 120 (B) and 420 of Indian Penal Code (IPC) while Vikash Metals and Power Limited Directors, Vimal Patni, Vikash Patni, anand Patni, Virender Kumar Jain, Kailash Chander Jain and Vijay Kumar Jain along with Anand Mallick who is the authorised signatory for the company.
Investigators have already questioned Arvind Jayaswal and Manoj Jayaswal, directors of AMR Iron and Steel Pvt Limited, for two consecutive days. Although CBI has not named any government official in the FIRs, senior officials of power ministry, coal ministry and chief secretaries of state governments who part of the screening committee are also under the scanner for recommending companies for allocation of coal blocks. CBI has alleged of criminal conspiracy between private companies and government officials in the case.