CBI files fresh FIR in coal block allocation irregularities, Gondwana Ispat in the dock
The CBI has lodged a fresh FIR against Ashok Daga, director of a Nagpur based Gondwana Ispat Limited, on Friday in connection with the ongoing probe into irregularities in allocation of coal blocks from 1993 to 2005 and 2006 to 2009.
‘We have registered 27th FIR in the coal block against Daga and his company under Sections 120 B and 420 of IPC regarding the Majra Coal Block allocation in 2003,’ CBI spokesperson said.
He said, ‘It was learnt that there was some mischievous activity on behalf of the company in getting the coal block. Later, after the allocation was made, they disposed of company’s equity without developing the coal mine. This was gross irregularity and therefore we have started a probe.’
Investigation revealed that the company has also submitted false and fabricated documents while applying for coal blocks. There are allegations that they have misrepresented on aspect of preparedness and tampered with the eligibility criteria. It is also suspected that some of the government officials were also charged for abusing their official positions.
In 2012, the Comptroller and Auditor General of India (CAG) in a report mentioned that due to irregularities in the whole process there was a notional loss of Rs 1.86 trillion to the national exchequer. Then the audit agency claimed that the allocation process was flawed and possibly fraudulent.
Gondwana Ispat Limited, is a 100 per cent subsidiary of BS Ispat Limited, and was established on 5 October, 2001. Probe revealed that earlier on 14 June, 2013, the ministry of coal had issued a show-cause notice to the company, a copy of which is with Millennium Post, for no progress of the Majra Coal Block.
The letter, which was issued by ministry’s director SK Shahi reads, ‘In order to expedite the development of the coal blocks, review meetings were held from time to time. In a similar such review meeting, it was noticed that the progress of the Majra Coal block allocated to the company is not satisfactory.’
It further reads, ‘Under such circumstances, you (Gondwana Ispat Limited) are hereby called upon to show cause, on each milestone separately to this ministry. Failing which it would be presumed that your company has no explanation to offer and action as appropriate would be taken against your company for de-allocation of said coal block.’
Sources said, after waiting for months there were no response from the firm and sensing ‘conspiracy’ CBI while probing the scam stumbled upon Gondwana’s dubious activities.
‘We have registered 27th FIR in the coal block against Daga and his company under Sections 120 B and 420 of IPC regarding the Majra Coal Block allocation in 2003,’ CBI spokesperson said.
He said, ‘It was learnt that there was some mischievous activity on behalf of the company in getting the coal block. Later, after the allocation was made, they disposed of company’s equity without developing the coal mine. This was gross irregularity and therefore we have started a probe.’
Investigation revealed that the company has also submitted false and fabricated documents while applying for coal blocks. There are allegations that they have misrepresented on aspect of preparedness and tampered with the eligibility criteria. It is also suspected that some of the government officials were also charged for abusing their official positions.
In 2012, the Comptroller and Auditor General of India (CAG) in a report mentioned that due to irregularities in the whole process there was a notional loss of Rs 1.86 trillion to the national exchequer. Then the audit agency claimed that the allocation process was flawed and possibly fraudulent.
Gondwana Ispat Limited, is a 100 per cent subsidiary of BS Ispat Limited, and was established on 5 October, 2001. Probe revealed that earlier on 14 June, 2013, the ministry of coal had issued a show-cause notice to the company, a copy of which is with Millennium Post, for no progress of the Majra Coal Block.
The letter, which was issued by ministry’s director SK Shahi reads, ‘In order to expedite the development of the coal blocks, review meetings were held from time to time. In a similar such review meeting, it was noticed that the progress of the Majra Coal block allocated to the company is not satisfactory.’
It further reads, ‘Under such circumstances, you (Gondwana Ispat Limited) are hereby called upon to show cause, on each milestone separately to this ministry. Failing which it would be presumed that your company has no explanation to offer and action as appropriate would be taken against your company for de-allocation of said coal block.’
Sources said, after waiting for months there were no response from the firm and sensing ‘conspiracy’ CBI while probing the scam stumbled upon Gondwana’s dubious activities.