The CBI has registered a fresh case in the ongoing investigation in the coal scam against Monnet Ispat and Energy Limited for alleged irregularities in the operation and allocation of coal blocks to the company. The agency yesterday registered a case of criminal conspiracy and cheating against the company and unidentified persons. Under the preliminary enquiries in the coal scam, the CBI had enquired into the allocation of Gare Palma and Rajgamar Dipside blocks to Monnet Ispat and Energy Limited. The company had applied for captive coal block for their proposed expansion of a sponge iron plant in Raipur.
The enquiry found that the company was alloted Gare Palma block by the 10th screening committee in 1996 for captive mining to supply coal to the proposed expansion of sponge iron plant and captive power plant (CPP) in Raipur. The company started mining in the block from August, 2004 but could set up only 0.3 MTPA (metric tonne per annum) as against the proposed 0.5 MTPA plant, the FIR alleged.
Meanwhile, the company had also set up a sponge iron plant at Raigarh. “The company from the year 2005-06 without taking permission from the Ministry of Coal started consuming coal from Gare Palma iv/5 coal block in its Raigarh Plant. The enquiry has revealed that the company was using more coal in Raigarh Plant than that at Raipur plant from the year 2008-09 onwards,” the agency alleged in its FIR.
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It claimed that the company till 2007 has also used the coal mined from the block in its captive power plant without taking permission from the ministry whereas the block was allocated only for its sponge iron plant at Raipur. Later, the company on the recommendation of 36th Screening Committee was allocated Rajgamar Dipside block for its Raigarh plant. “The company while applying for Rajgamar Dipside misrepresented before the Ministry of Coal by mentioning in the application form that it has no coal block or the coal linkage whereas on this date the company was using coal in its Raigarh plant for which it had applied for Rajgamar Dipside block,” it alleged.
The CBI alleged that it was revealed that the company has unauthorisedly diverted coal from Gare Palma block to its Raigarh plant. It alleged that the company had dishonestly misappropriated the coal from this block in its power plant till 2007. In addition, the company had also misrepresented before the coal ministry that no coal block or coal linkage was available with intention to secure Rajgamar Dipside coal block, it alleged.