New Delhi:
The CBI has alleged in its 12th FIR in the coal allocation case that Congress MP Naveen Jindal's company Jindal Steel and Power Limited (JSPL) colluded with Minister of State for Coal Dasari Narayan Rao to influence screening committee that allotted coal blocks, by investing more than two crores.
The investigation agency has alleged that Mr Jindal's company did this in return for being allotted a mine in Jharkhand. It has also charged Mr Jindal's company with misrepresenting facts to secure the allotment and has alleged that the government's screening committee did not conduct adequate background checks on applicants and made allocations without transparency.
In its FIR or first information report, the CBI has traced what it claims is a complex money route in the alleged bribe, but will have to establish a quid pro quo in court, which might prove difficult.
The agency claims that the timing is critical. JSPL and another Jindal Group company, Gagan Sponge, were allotted the Jharkhand mine in January 2008. Less than a year later, in December 2008, New Delhi Exim, a company that the CBI alleges is a Jindal group affiliate, spent Rs 2.25 crore to buy shares in Hyderabad-based Sowbhagya Media.
Mr Rao's company Siri Media holds 59.6 per cent stake in Sowbhagya.
The CBI has alleged that the Jindal subsidiary paid Rs 100 each for shares that cost only Rs 28 apiece. It has accused Mr Jindal and Mr Rao of criminal misconduct, conspiracy and cheating and charged them under the Prevention of corruption Act.
The agency has alleged that to get the Jharkhand mine, JSPL in its application submitted in January 2007, made false claims about its preparedness, and about its previous allocations.
The case is the first to allege a quid pro quo between a firm that got a coal license and officials in charge of deciding allocations. Mr Jindal's home and offices were raided this morning by the CBI. Jindal Steel shares were down over 15 percent at Rs 226 at market closing today.
JSPL's Head of External Affairs Manu Kapoor said today, "JSPL, as a law abiding company, is governed by a strong ethical code of conduct. This is an ongoing CBI investigation into coal block allocation. At this stage of investigation, JSPL is committed to fully cooperate with CBI."
The investigation agency has alleged that Mr Jindal's company did this in return for being allotted a mine in Jharkhand. It has also charged Mr Jindal's company with misrepresenting facts to secure the allotment and has alleged that the government's screening committee did not conduct adequate background checks on applicants and made allocations without transparency.
In its FIR or first information report, the CBI has traced what it claims is a complex money route in the alleged bribe, but will have to establish a quid pro quo in court, which might prove difficult.
The agency claims that the timing is critical. JSPL and another Jindal Group company, Gagan Sponge, were allotted the Jharkhand mine in January 2008. Less than a year later, in December 2008, New Delhi Exim, a company that the CBI alleges is a Jindal group affiliate, spent Rs 2.25 crore to buy shares in Hyderabad-based Sowbhagya Media.
Mr Rao's company Siri Media holds 59.6 per cent stake in Sowbhagya.
The CBI has alleged that the Jindal subsidiary paid Rs 100 each for shares that cost only Rs 28 apiece. It has accused Mr Jindal and Mr Rao of criminal misconduct, conspiracy and cheating and charged them under the Prevention of corruption Act.
The agency has alleged that to get the Jharkhand mine, JSPL in its application submitted in January 2007, made false claims about its preparedness, and about its previous allocations.
The case is the first to allege a quid pro quo between a firm that got a coal license and officials in charge of deciding allocations. Mr Jindal's home and offices were raided this morning by the CBI. Jindal Steel shares were down over 15 percent at Rs 226 at market closing today.
JSPL's Head of External Affairs Manu Kapoor said today, "JSPL, as a law abiding company, is governed by a strong ethical code of conduct. This is an ongoing CBI investigation into coal block allocation. At this stage of investigation, JSPL is committed to fully cooperate with CBI."
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