CBI registers fresh FIR, notes cheating and conspiracy

THE CASE WAS FILED ON THE BASIS OF A COMPLAINT BY FORMER CONGRESS MP SANDEEP DIKSHIT AND OTHERS IN 2012 TO THE CVC

NEW DELHI: The CBI has registered a fresh coal scam FIR alleging cheating and criminal conspiracy in the allocation of Chotia block in Chhattisgarh to Prakash Industries.

Besides Prakash Industries, the agency has named Prakash Industries and its ‘unknown’ officials as well as promoters as an accused in the case. The agency has alleged that the company conspired with unknown persons and misrepresented before the coal ministry and screening committee for coal block allocation about its capacity in order to get Chotia coal block.

The case was filed on the basis of a complaint by former Congress MP Sandeep Dikshit and others in 2012 to the Central Vigilance Commission (CVC). For the last four years, the CBI was conducting a preliminary enquiry in the matter.

According to the FIR, the coal ministry had issued a conditional allocation letter to Prakash Industries in September, 2003 for the allocation of Chotia Coal Block for expansion of its sponge iron plant in Champa (Chhattisgarh).

The CBI has charged that Prakash Industries made false claims about production data of its sponge iron plant in many of its communications to the coal ministry while applying for the block.

During a meeting to screen applicants for coal block allocation in May, 2003, the company claimed that existing sponge iron capacity of 4 lakh per annum (LTPA) and said seeks to add another 4 LTPA capacity.

However, the FIR says that according to enquiry revealed that as per the Coal Controller Organisation (CCO) reports in 2009 and 2011, the production of sponge iron in the years 200607 to 2009-10 ranged between 2.05 LT (2006-07) to 3.35 LT (2009-10), respectively making it clear that the company even later did not attain capacity of even 4 LTPA.