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Coal scam: CBI files case against Monnet Ispat

Agency analysed allocation of both Gare Palma and Rajgamur Dipside coal blocks

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The agency carried out joint analysis in the allocation of both the coal blocks
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The Central Bureau of Investigation (CBI) registered criminal conspiracy and cheating case against Monnet Ispat and Energy Limited on Tuesday for alleged irregularities in the operation and allocation of coal blocks to the company.

They agency registered the case against the company almost five years after they had filed two preliminary enquiries of irregularities in the operation and allocation of coal blocks to the company.

The agency carried out joint analysis in the allocation of both the coal blocks — Gare Palma IV/5 and Rajgamar Dipside.

It was found that the company had applied for captive coal block for their proposed expansion project of Sponge Iron Kiln and captive power plant (CPP). The tenth screening committee in 1996 identified sub-block of Gare Palma in Mand-Raigarh Coalfield for captive mining by the company to supply coal to the proposed expansion of sponge iron plant at Raipur till 2003. Even after expiry of the allocation, the company started mining the block from August 2004.

The agency also alleged that the company, till 2007, has also used the coal mined from Gare Palma block in its CPP without taking permission from the ministry whereas the coal block was allocated only for its sponge Iron plant at Raipur.

"Further the company had dishonestly misappropriated the coal from this coal block in its CPP till 2007. The company had also misrepresented before the coal ministry that no coal block or coal linkage was available with the intention to secure Rajgamar Dipside coal block, the FIR stated.

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