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Coal scam: Jindal faces conspiracy and fraud charges

A special CBI court on Friday ordered framing of charges against industrialist Naveen Jindal, former minister of state for coal Dasari Narayan Rao and 13 others for criminal conspiracy, cheating and o

A special CBI court on Friday ordered framing of charges against industrialist Naveen Jindal, former minister of state for coal Dasari Narayan Rao and 13 others for criminal conspiracy, cheating and other offences in a coal block allocation scam case.

Apart from Mr Jindal and Mr Rao, the court also ordered the trial of former Jharkhand chief minister Madhu Koda, former coal secretary H.C. Gupta, and 11 others who were chargesheeted by CBI in the case pertaining to alleged irregularities in allocation of the Amarkonda Murgadangal coal block to Jindal Steel and Power Limited (JSPL) and Gagan Sponge Iron Pvt Ltd (GSIPL) in 2008. Special CBI judge Bharat Parashar said “charges to be framed against all accused under Sections 120B (criminal conspiracy) read with 409 and 420 of IPC and under Sections 13(1)(c), 13(1)(d) of the Prevention of Corruption Act”. The court, however, said charges would be formally framed against the accused later on.

The other accused are Rajeev Jain, director of Jindal Realty Pvt Ltd; Girish Kumar Suneja and Radha Krishna Saraf, directors of GSIPL; Suresh Singhal, director of New Delhi Exim Pvt Ltd; K. Ramakrishna Prasad, managing director of Sowbhagya Media Ltd; and chartered accountant Gyan Swaroop Garg. These accused are currently out on bail. Five firms — JSPL, Jindal Realty Pvt Ltd, Gagan Infraenergy Ltd (formerly known as GSIPL), Sowbhagya Media Ltd and New Delhi Exim Pvt Ltd — are also accused in the case.

The court also said that a facade of companies was prima facie created as a smokescreen to cover up the illegal act of paying Rs 2 crore to the former MoS for coal by Mr Jindal in lieu of favouring his two firms by securing allocation of a coal block in 2008.

Meanwhile, Jindal Steel and Power denied any wrongdoing, saying, “We deny all allegations made against our company and its management.”

We have full faith in the Indian judicial system and are confident to come out clean during the process,” JSPL said in a statement.

Dealing with the materials placed before him by the prosecution, the special CBI judge said in the 136-page order: “The aforesaid discussion of the overall facts and circumstances prima facie show the nature of overt and covert acts on the part of accused 7, Naveen Jindal, in the entire criminal conspiracy. In fact his role has come out to be that of a central figure around whom the entire criminal conspiracy revolved.”

The court also issued notice to the CBI and 14 accused on a plea by Mr Suresh Singhal for a pardon and turning approver in the case. He filed the application on April 21 seeking to make a disclosure statement which was later recorded by a magistrate and placed before the special judge in a sealed envelope. “Trial proceedings in this case would be appropriate to be conducted after adjudication of this issue,” the court said and fixed May 11 for hearing the submissions of the CBI and the accused on Mr Singhal’s plea.

The special court had earlier fixed Friday for pronouncing its order on framing of charges as the judge was busy with other official work. During arguments on framing of charges, the CBI had alleged that former Jharkhand CM Koda, also accused in the case, had favoured JSPL and GSIPL in allocation of Amarkonda Murgadangal coal block in Jharkhand. The CBI had also claimed that the accused had conspired with each other to get the allocation of the coal block in favour of the two Jindal group firms.

Meanwhile, immediately after the court’s order, Jindal Steel and Power denied any wrongdoing, saying coal blocks were allocated to it purely on merit. “We deny all allegations made against our company and its management. We have full faith in the Indian judicial system and are confident to come out clean during the process,” JSPL said in a statement.

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