Jindal Steel and Power shares tumble over 13% as CBI files case against company

Written by PTI | Mumbai | Updated: Oct 20 2014, 20:17pm hrs
Jindal Steel and PowerFollowing this, the Jindal Steel and Power's scrip tanked 13.57 per cent to Rs 128 - its 52-week low on the BSE. Reuters
Shares of Jindal Steel and Power fell sharply by over 13 per cent in early trade today after a case of alleged cheating and corruption has been registered by CBI against the company relating to the probe into coal blocks allocated during 1993-2005 period.

Following this, the company's scrip tanked 13.57 per cent to Rs 128 - its 52-week low on the BSE.

At the NSE, it slumped 13.51 per cent to hit a one-year low of Rs 127.70. The scrip was the top loser among 50-Nifty scrips.

Later, the stock pared some of the losses and was trading at Rs 140.50, down 4.84 per cent, at the NSE in noon trade.

CBI spokesperson yesterday said that it is the 36th FIR in connection with its probe in the coal allocation scam.

The fresh case has been registered against Jindal Stripes Limited (now known as Jindal Steel and Power Limited) and unknown public officials for alleged criminal conspiracy, cheating under the Indian Penal Code and Provisions of the Prevention of Corruption Act, CBI sources said.

Soon after registering the case, the agency yesterday carried out searches at four locations in Raigarh, Chhattisgarh.

CBI sources said the case pertains to allocation of Gare Palma IV/1 coal block to Jindal Strips Limited and JSPL.

The company spokesperson had said JSPL reiterates that all its actions are in keeping with the legal framework of the country and that it complies with the law in letter and in spirit.

"JSPL continues to cooperate with all the authorities in a responsive manner," the spokesperson had said.

The company is already facing CBI probe for alleged cheating and misrepresentation of facts in bagging the Amarkonda Murgadangal block in Birbhum district of Jharkhand in 2008.