The CBI on Wednesday registered a case against Nagpur-based firm BS Ispat ltd for allegedly misrepresenting information to seek a coal block in 2000 and searched the premises of the accused director of the private firm. This is the 40th FIR in the coal scam. The agency searched the official and residential premises of Mohan Agrawal, director of BS Ispat ltd in Nagpur, Chandrapur and Yavatmal (all in Maharashtra), agency sources said. The firm and the director have been accused of offences relating to criminal conspiracy and cheating in the allocation of Marki Mangli Block I in Wardha. The FIR alleged that the firm had submitted false information on existence of the company while submitting the application and also during processing of the application for allocation of the coal block. Agrawal had allegedly furnished the false information.
The promoters of the company allegedly disposed of their shares in the company through Share Purchase Agreement in 2011 after getting the coal block. The coal block was allocated for captive use in the proposed Sponge Iron Plant (SIP) of 3 lakh tonnes per annum capacity. It was also mentioned in the allocation letter that the company would set up a washery and washed coal would be used in the SIP and the middling would be used in the Captive Power Plant (CPP) to be set up by the company. However, the company did not fulfill any of the terms of the allocation of the coal block, the sources added.