Coal scam: Koda conspired to favour Jindal group firms, says CBI

Former Jharkhand Chief Minister Madhu Koda had “favoured” industrialist Naveen Jindal’s two firms in allocation of Amarkonda Murgadangal coal block, CBI on Monday told a special court.

It said there was documentary evidence to show that Koda was involved in the conspiracy as he had initially recommended certain companies for the coal block but later on inserted the name of Jindal group firm Gagan Sponge Iron Private Ltd (GSIPL).

“Koda had replaced the name of a company arbitrarily and tried to ensure that they (Jindal firms) practically got the entire coal block,” special public prosecutor R S Cheema said.

“There is direct evidence of Naveen Jindal meeting Madhu Koda in Ranchi and Delhi. Koda had formed the government with the support of Congress and Jindal was a member of Parliament at that time.

“Hence, Jindal had the power to influence the state government and Koda acted on his advice in order to survive and run his government,” Cheema told Special CBI Judge Bharat Parashar during the hearing which would continue on Tuesday.

The prosecutor said that Jharkhand government had formed a three-member sub-committee to look into the applications of the applicant firms and the panel had recommended Lanco Infratech Ltd, JSW Energy Ltd and Jindal Steel and Power Ltd (JSPL) for the coal block.

“Madhu Koda had changed the name of one of the three firms suggested by the sub-committee. The name of JSW Energy Ltd was replaced by Gagan Sponge Iron Private Ltd (GSIPL) by Koda,” he said.

CBI also said that ex-Coal Secretary H C Gupta and former Minister of State for Coal Dasari Narayan Rao had “acted in unison” in the matter.

All the accused, including Naveen Jindal, Koda, Gupta and Rao, have denied the allegations levelled against them by CBI.