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CBI books another private firm in connection with Coalgate

The Central Bureau of Investigations (CBI) booked another private firm in connection with the coal scam for falsely claiming that it was in possession of 250 acres of land when it held only 150 acres.

The CBI also alleged that the company had proposed to have 0.75 million tonnes per annum capacity for their steel plant, for which a block was sought, whereas when it was allocated the capacity remained unutilised.

The company was allocated Kesla North coal block in Korba, Chhattisgarh on 5 August 2008. CBI sources said Rathi Steel and Power Limited, its chief executive officer Udit Rathi and unknown others have been booked for alleged criminal conspiracy, cheating and for offences under the Prevention of Corruption Act.

‘It is alleged that the Delhi based private Steel and Power company misrepresented on account of stage of preparedness in terms of possession of land to get the coal block. It is also alleged that the company was favoured for allocation of coal block over other better placed applicants,’ CBI spokesperson said.

CBI sources added that the officials of the screening committee are directly under the scanner in this case. ‘We strongly suspect that officials of screening committee may have favoured this company over other eligible ones,’ the CBI sources stated. No public servant, however, has been named in the FIR yet.

This is the 13th FIR in connection with the coal blocks allocation scam probe. Soon after registering the FIR, CBI teams carried out searches at the premises of the company in Delhi, Ghaziabad and Sambalpur in Odisha.

CBI is probing alleged irregularities in the allocation of 192 coal blocks which were made between 1993 to 2011.

The agency has registered three preliminary enquiries in this connection--related to allocation between 2006-09, allocation between 1993 to 2004 and allocations to joint ventures.
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