The CBI on Friday registered a fresh case in connection with the coal block allocation scam against a Mumbai-based group and its Nagpur-based company Topworth Urja and Metals ltd (formerly known as Shree Virangana Steels), its directors and other unknown persons for alleged irregularities the allocation of three coal blocks and subsequent misuse by the company promoters.
This is the 19th FIR registered by CBI in the coal scam. This case pertains to Marki Mangli Coal Block-II, III and IV in Maharashtra that were allocated to Topworth Urja between 1993 and 2005. The case is an outcome of the Preliminary Enquiry to look into allegations of irregularities in the coal block allocation during 1993-2005.
Directors of Topworth Surendra lodha and Om Prakash Nevatia have been booked criminal conspiracy (120-B) and cheating (420) under the IPC.
As per sources, the agency also conducted searches at six locations in Nagpur, Yavatmal and Mumbai in Maharashtra.
The FIR has alleged that Topworth irregularly entered into mining lease deeds in the name of a benami firm (Viranagana Steels) and that its request for a change of name to Topworth was not approved by the Coal Ministry as there was also a change in the shareholding pattern of the company.
The FIR further alleged that the company resorted to excessive mining without augmenting the capacity of its existing sponge iron plant. Sources said the coal mined in excess to serve the captive sponge iron plant which could have been illegally sold in the open market in contravention of the rules for captive usage, causing loss to the exchequer.