Coalgate: CBI files fresh case against Delhi-based firm

Taking further its probe into the coal block allocation scam, CBI on Saturday registered a fresh case against a Delhi-based company for alleged misrepresentation of facts while applying for mines and carried out searches at 10 locations across the country.

CBI sources said searches were conducted today at 10 places in Delhi, Ghaziabad (UP), Faridabad and Narwana (both in Haryana) and Raipur (Chhattisgarh) at offices and factory of Pushp Steel and Mining, residential premises of its Directors Atul Jain and Sanjay Jain as well as the premises of its sister concerns and group companies.

They said the new FIR takes the total number of cases in the coal allocation probe to 11.

The sources alleged that the company got mining lease on the basis of recommendation from the Chhattisgarh Government despite having no experience and lacking enough capital required for starting mining operations.

The sources said the company and its Directors have been booked for alleged criminal conspiracy to cheating and also relevant provisions of the prevention of corruption Act.

"The allegations related to getting Brahmapuri coal blocks allocated on the basis of misrepresentations and false claims in the applications, presentations and connivance/lack of due diligence on part of unknown others," CBI spokesperson said

She said it has been alleged that the said Delhi based private company was recommended the allocation of Brahmapuri Coal Block by the Screening Committee for its proposed Sponge Iron End Use Project in District Durg (Chhattisgarh).

The CBI spokesperson said that allocation of Brahmapuri coal block was done on the basis of alleged false information that it had a Iron Ore Mining Lease when it had none.

"It was further alleged that the company did not have any experience in steel manufacturing and the networth of the group companies/firms was around Rs 3.01 crores which was insignificant," the official said in a statement.

The statement said certain documents recovered during searches from these places pertaining to the allocation of the coal block including the computer hard disks are presently under scrutiny.

The agency is now planning to summon the Directors for questioning on the basis of documents recovered during the searches.

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