Navabharat Power in Coalgate charge sheet for fraudulent claims

Mar 11 2014, 01:35 IST
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The CBI has charged Navabharat with allegedly misrepresenting facts and making 'fraudulent' claims to 'embellish' its applications. The CBI has charged Navabharat with allegedly misrepresenting facts and making 'fraudulent' claims to 'embellish' its applications.
SummaryCBI probing the coal block allocation scam filed its first charge sheet in a Delhi court.

The Central Bureau of Investigation (CBI) probing the coal block allocation scam filed its first charge sheet in a Delhi court on Monday against Hyderabad-based Navabharat Power, its chairman P Trivikrama Prasad and vice-chairman Y Harish Chandra Prasad. The CBI has charged Navabharat with allegedly misrepresenting facts and making “fraudulent” claims to “embellish” its applications to procure coal block allotments between 2006 and 2009.

Earlier, in the FIR filed by the premier probe agency in September 2012, it had said that in July 2010, after coal blocks were allocated to Navabharat Power, the promoters and shareholders of the company had sold their entire shareholdings to Essar Power and its subsidiary company at a “huge profit” of over R200 crore.

The 9,500-page chargesheet, however, did not name Essar Power as an accused. Neither did it name any government official or screening committee member. “We did not find any wrongdoing on the part of Essar,” a CBI official said, adding, “It was found that the company (Navabharat) misrepresented its net worth to get coal blocks in Orrisa for a 2,200 MW power plant in Dhenkanal.”

The agency, as directed by the Supreme Court on Monday, is expected to file five more charge sheets pertaining to the coal allocation scam against five different companies in the CBI special court on March 28. The probes against these five companies, sources said, have been completed, but they refused to name them.

In all, CBI has registered FIRs against 16 companies namely Hindalco, Jindal Steel and Power, AMR Iron and Steel, JLD Yavatmal Energy, Vini Iron and Steel Udyog, JAS Infrastructure Capital, Grace Industries, Rathi Steel and Power Ltd, Jharkhand Ispat, Green Infrastructure, Kamal Sponge, Pushp Steel,BLA Industries, Castron Technologies and Castron Mining and Nava Bharat Power.

Sources said the CBI charge-sheeted Navabharat Power and the two executives under Sections 120-B (criminal conspiracy) and 420 (cheating) of the Indian Penal Code, adding that the probe agency has not charged them under the provisions of the Prevention of Corruption Act.

Earlier in its FIR filed on September 3, 2012, CBI had named Navabharat Power and the two executives along with some unknown public servants of the ministry of coal and the Jharkhand government and others in the case. The FIR was lodged after a preliminary inquiry was initiated on the reference of the Central Vigilance Commission (CVC). In the FIR, CBI had also accused unnamed officials

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