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LATEST NEWS UPDATES | Coal Blocks Allocated During Koda's Term Under CBI Lens

Coal Blocks Allocated During Koda's Term Under CBI Lens

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published Published on Sep 11, 2012   modified Modified on Sep 11, 2012
-Outlook

At least five of the 13 coal blocks allocated when Madhu Koda was the Chief Minister of Jharkhand are under the CBI scanner for alleged irregularities in the applications submitted by the beneficiary firms.

CBI sources said today preliminary investigations have shown there were alleged irregularities in the allocation of at least five coal blocks during the tenure of Koda--between September 2006 and August 2008.

During the two-year period, the sources said the Koda government had recommended nearly 13 coal blocks across the mineral-rich state.

They said the agency has found that the companies which were allocated these blocks were allegedly a front of close aides of Koda who have bagged them allegedly using the influence of the former Chief Minister.

The sources said some of these companies could be named in the second set of FIRs which could be registered by the agency in this month.

The agency has named Vini Iron and Steel in its first set of five FIRs alleging that the company fudged documents to project an inflated networth to show eligibility for getting a captive coal block for a steel project.

The company, which bagged the Rajhara North coal block, was later sold to a close aide of Koda who is also facing a probe by the Enforcement Directorate, the sources said.

The sources said they would seek help of the Income Tax department to dig further into financial transactions of these companies. They said the department is already probing the alleged tax evasion committed by the beneficiary companies and has prepared a detailed report.

Outlook, 11 September, 2012, http://news.outlookindia.com/items.aspx?artid=774948


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