CBI files coal case against Ispat

The CBI, probing the Coalgate scam, on Wednesday registered a fresh case against Nagpur- based B. S. Ispat for alleged misrepresentation of facts while applying for the allocation Marki Mangli coal block- I in Maharashtra in 2001. This coal block was allocated to the accused firm during the NDA tenure.

Sources said the case against B. S. Ispat and its director Mohan Agarwal has been registered under IPC sections pertaining to criminal conspiracy and cheating. The CBI spokesperson said, “It has been alleged that the Nagpur- based private firm had submitted false information on existence of the company while submitting the application and also during processing of the application for allocation of the coal block. The false informa- tion was allegedly submitted by its director”.

Immediately after registering its 40th FIR in the Coalgate scam, the agency sleuths carried out searches at the residence of Mr Agarwal, corporate office in Nagpur, factory office in Chandrapur and mines office of the company in Yavatmal. “The coal block was allocated for captive use in the proposed Sponge Iron Plant ( SIP) of three lakh tonnes per annum capacity. It was also mentioned in the allocation letter that the company would set up a washery and washed coal would be used in the SIP and the middling would be used in the captive power plant to be set up by the company”, said the spokesperson. It has also been alleged that the promoters of the company after getting the allocation of the coal block, disposed off their shares through Share Purchase Agreement in 2011.