Coal scam: CBI files chargesheet against Navabharat Power, 2 directors

New Delhi: CBI on Monday filed its first charge  sheet in a Delhi court in the coal blocks allocation case  against Navabharat Power Pvt Ltd for allegedly misrepresenting  facts and making "fraudulent" claims to "embellish" its  applications to get allotments between 2006 and 2009.   Besides Navabharat Power Pvt Ltd, its two directors — P.  Trivikrama Prasad and Y. Harish Chandra Prasad were named in  the charge sheet filed before Special CBI Judge Madhu Jain.  

According to court sources, CBI has charge sheeted  Navabharat Power Pvt Ltd and its two directors under Sections  120-B (criminal conspiracy) and 420 (cheating) of the IPC.   CBI has not charged them under the provisions of the  Prevention of Corruption Act, the sources said.   They further said that other documents and annexures  which are to be filed along with the charge sheet will be  submitted before the judge later in the day.  

CBI in its FIR filed on September 3, 2012, had named  Navabharat Power Pvt Ltd, its two directors along with some  unknown public servants of the Ministry of Coal and Jharkhand  government and others in the case.   The FIR was lodged after a preliminary enquiry was  initiated on the reference of the Central Vigilance Commission  (CVC).   In the FIR, CBI had also accused unknown officials of the  Coal Ministry of entering into conspiracy and "wilfully" not  scrutinising documents to allow "undue advantage" for the  company in getting the blocks.  

The agency, in its FIR against Navabharat Power Pvt Ltd,  had said that in order to "embellish its claim for allocation  of coal block", the firm "fraudulently" claimed that it was  having the required net worth to get the coal mines.   The CBI had said that after allocation of coal blocks,  the promoters and shareholders of Navabharat Power Pvt Ltd  sold off their entire shareholdings in July 2010 to Essar  Power Ltd and its subsidiary company at "huge profit of over  Rs 200 crores."   However, court sources said Essar Power Ltd has not been  named as an accused in the charge sheet.  

"Enquiry also revealed that officials of the Ministry of  Coal in pursuance of criminal conspiracy, wilfully and  purposefully, did not scrutinise the aforesaid documents  regarding false claims/concealment of facts by Navabharat  Power Pvt Ltd and thus facilitated the company in getting  undue advantage in allocation of Rampia and Dip Side of Rampia  Coal Blocks," CBI had said in the FIR.  

In its FIR against Navabharat Power Pvt Ltd, the CBI had  said the Ministry of Coal had invited applications for  allocation of 38 coal blocks, including 15 for the power  sector and 23 for non-power sector, through an advertisement  in November 2006.   It had said the 38 coal blocks included Rampia and 'Dip  Side' of Rampia coal blocks in Orissa, having geological  reserve of 645.235 MMT, which were to be allocated to the  power sector.  

CBI had alleged that the Screening Committee recommended  allocation of these coal blocks jointly to six companies —  Sterlite Energy Ltd, GMR Energy Ltd, Lanco Group Ltd, Mittal  Steel India Ltd, Reliance Energy Ltd and Navabharat Power Pvt  Ltd for their proposed power plants.   It had said, "The Ministry of Power had recommended  allocation of Rampia block to Sterlite Energy Ltd and Vedanta  Alumina Ltd and Dip Side of Rampia block to Monnet Ispat and  Energy Ltd, Jindal Photo Ltd and Mittal Steel India Ltd."  

"However, Navabharat Power Pvt Ltd had recommendations of  Ministry of Power for allocation of Mandakini coal block in  the state of Orissa. The government of Orissa had also  recommended Navabharat Power Ltd for allocation of a coal  block," it had alleged.   "Therefore, a regular case is registered under sections  120-B (criminal conspiracy) read with 420 (cheating) of the  IPC and 13(2) read with 13(1)(d) of Prevention of Corruption  Act, 1988 against Navabharat Power Pvt Ltd, its directors viz  P Trivikrama Prasad... Y Harish Chandra Prasad... along with  unknown public servants under Ministry of Coal and unknown  others," the CBI had said.