In In a major indictment of the ruling dispensation at the Centre, the CBI has booked former Minister of State for Coal Dasari Narayan Rao, Congress MP and industrialist Naveen Jindal and "unknown officials of the Screening Committee" for alleged criminal conspiracy, cheating, graft and criminal misconduct in its 12th FIR in the coal blocks allocation scam.
The shares of JSPl tanked by 24 per cent at the NSE as the CBI raided Naveen Jindal's business premises across the country. Besides Jindal and Rao, the CBI has also booked Jindal Steel and Power limited, Gagan Sponge Iron limited, Jindal Realty and ND Exim (all Jindal companies) and Rao's company Saubhagya Media. Unknown directors of accused private companies also figure in the FIR.
After a eight-month-long probe into the scam, for the first time the CBI has named the then Minister of State as accused in an FIR.The CBI has alleged that Rao received `2.25 crore camouflaged as investment from one of Jindal's firms within a year of allocating him a coal block. It is also the first time that "unknown" officials of the Screening Committee have also been named in the FIR.
CBI sources said Jindal Steel and Power limited and Gagan Sponge Iron limited, also a Jindal firm, had bagged Amarkonda Murgadangal coal block in Birbhum, Jharkhand in the year 2008 by alleged misrepresentation of facts during Rao's tenure as Minister of State for Coal.
The FIR said the misrepresentation was allegedly done on three counts - land, water supply and previous allocations. The misrepresentations were made to claim eligibility to seek the coal block.
CBI sources said JSPl allegedly claimed in the application submitted in January 2007 that they had only three coal blocks with them whereas they had at least six coal blocks.
The sources said JSPl did this to boost their eligibility for the coal block as the Government was mulling to avoid monopoly of a single company by not allocating large number of blocks to one firm.
Within a year, a block was allocated to JSPl in January 2008. Shares of Rao's firm Saubhagya Media listed at Rs 28 at that time were purchased by one of Jindal's firm New Delhi Exim limited at a whopping Rs 100 per share with total investment of nearly Rs 2.25 crore, which is alleged to be illegal gratification.
Reacting to the development, the accused JSPl in a statement said: "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 the investigation, the JSPl is committed to fully cooperate with the CBI."
The sources said in the account books of New Delhi Exim, the said money was shown as loans from Jindal Realty which in turn had received the money as loan from Gagan Sponge Iron limited to show it to be a genuine investment.
After registering the FIR, CBI sources said the agency carried out searches at 19 locations including residence and offices of Jindal in the national Capital and Rao in Hyderabad.
The agency team carried out simultaneous searches at the 6-Prithviraj Road residence of Jindal and offices of his firms in Bhikaji Cama Place. The sources said Jindal was not present at his residence so the sleuths sealed some cupboards and rooms which would be opened in his presence once he returns.
Rao, a former Congress Rajya Sabha MP, held position of Minister of State for Coal between 2004-06 and between 2006 and 2008. He has already been quizzed by the agency in connection with the probe into the coal block allocations.
The latest case has been registered following the ongoing probe into the preliminary enquiry registered in June last year to examine the irregularities in allocation of coal blocks during the period 2006-2009.
Meanwhile, shares of JSPl on Tuesday crashed over 24 per cent in morning trade, as Naveen Jindal and the company were named as accused in the fresh FIR filed by CBI in connection with the coal allocation scam.
Following the news, shares of JSPl went into tailspin and plunged 24.3 per cent to Rs 202 -- its 52-week low on the BSE. At the NSE, the stock tumbled 24.13 per cent to a touch one-year low of Rs 202.75. The company's market capitalisation dipped by Rs 4,287 crore to Rs 20,659 crore.