Coal scam: CBI searches offices in J''khand, WB

New Delhi, December 21

The CBI today carried out searches at five locations in Jharkhand and West Bengal after registering a fresh case in connection with alleged irregularities in the allocation of coal blocks.

According to CBI sources, the case has been registered against Electrosteel Castings Ltd and Electrosteel Steels Pvt Ltd and unknown public servants in connection with allocation of Parbatpur coal block in Jharkhand in 2005 for its pig iron plant.

Parbatpur is among the 29 blocks being reviewed by an inter-ministerial group from the Comptroller and Auditor General's (CAG) list of 57, which allegedly translated into a loss of Rs. 1.86 lakh crore to the national exchequer.

The searches were conducted at five offices of the company in Kolkata, Ranchi and Bokaro, the sources said. The CBI alleged that Parbatpur block was allocated to Electrosteel Castings based in Sundergarh, Odisha with corporate office in Kolkata for their pig iron plants at Khardah (West Bengal) and Kalahasti (Andhra Pradesh).

The middlings generated in washery were for captive consumption in the proposed plant. “It is, further alleged that the said Sundergarh-based company acquired about 48.5 per cent shares of an Andhra Pradesh-based private company (Lanco Infrastructure) and allocation was made for plant of Andhra Pradesh-based company whereas the Andhra Pradesh-based private company never independently applied for a coal block," CBI spokesperson said here today.

The CBI alleged that Electrosteel Castings sold 50162.42 metric tonnes of middlings dishonestly to another private company based at Electrosteel Steels Pvt Ltd based in Jharkhand.

It said the company disposed 42,500 Metric Tonnes of inferior ungraded coal, 'jhama' and slurry to the non-approved end users.

The agency has registered a case of alleged cheating and criminal conspiracy in addition to charges of violation of provisions of Prevention of Corruption Act. — PTI