CBI files coal cases against 3 companies

By: Express News Service | New Delhi | Published:April 1, 2017 1:09 am
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The CBI has registered a case against three more companies in connection with the coal blocks allocation scam. The companies — Rungta Mines, Adhunik Alloys and Power, and Jai Balaji Industries — have been alleged to have caused a loss of Rs 24.53 crore to the PSU Central Coalfields Limited (CCL) by overdrawing coal. The then CCL General Manager Rajiv Gupta has also been booked for alleged corruption and being part of a criminal conspiracy to cheat the public sector undertaking.

CBI has alleged that Gupta, between 2010 and 2015, issued coal to the companies beyond their limits in the fuel supply agreement entered with CCL, under tapering linkage, without collecting an add-on price, thus causing a loss of Rs 24.53 crore. Tapering linkage is a short-term arrangement provided to coal purchasing companies who have been allocated captive coal blocks for their plants.

Rungta Mines, and Adhunik Alloys and Power had entered into fuel supply agreement for normal supply with the CCL on February 27, 2009, while Jai Balaji Industries had signed it on April 30, 2008.

According to the guidelines of the short-term linkages, every company allotted a coal block is bound to intimate to Coal India. None of the three companies intimated the public sector undertaking and continued to receive coal supply under normal linkage and evaded conversion in tapering linkages, the CBI has alleged. According to the CBI this was done with mala fide intent.

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