Mumbai: The CBI has registered a case against a Nagpur-based firm over allegations that it wrongfully accessed coal worth 1.14 lakh metric tonnes from public-sector Western Coalfields Limited (WCL) for its sponge-iron manufacturing plant.
The coal stock was accessed despite the fact that the firm’s sponge-iron plant allegedly did not undertake commercial production on the basis of the stock and had instead diverted the coal for sale in the open market. “The firm had, in conspiracy with certain WCL Nagpur officials, drawn coal to the tune of 1,14,990 metric tonne of coal from from WCL during 2012 to July 2015 at a notified rate of Rs 600 per metric tonne without any commercial production and diverted it in the open market,” said a CBI source.
The agency suspects that the firm, M/s Chinteshwar Steel Pvt Ltd, wrongfully gained Rs 6.89 crore with its alleged sale of coal in the open market and caused the loss of an equal amount to the WCL, according to the CBI’s case FIR. The FIR, apart also named unknown officials of the WCL, Nagpur for their alleged collusion in the irregularities. The agency will soon summon the firm’s and WCL’s officials for questioning, said an agency source.
Despite emailing the firm, The Asian Age did not receive any response about the CBI’s case against it. Based on the firm’s request, the coal ministry’s Standing Linkage Committee had recommended to the WCL in 2008 for allotting the supply of E-grade coal for its sponge-iron making firm. According to the source, the WCL officials concerned had not carried out the necessary “physical verification” at the firm’s plant site after receiving a complaint against it in 2014, claiming that it had closed down and the coal was being sold in the open market.
