Coalgate: CBI names KM Birla in new FIR; Nalco, Hindalco shares slide

The CBI is also currently conducting searches in Delhi, Kolkata, Bhubaneswar and Mumbai in connection with the coal scam.

FP Staff October 15, 2013 19:23:09 IST
Coalgate: CBI names KM Birla in new FIR; Nalco, Hindalco shares slide

In its 14th FIR in connection with the coal block allocation scam, the Central Bureau of Investigation has named Chairman of the Aditya Birla Group, Kumar Mangalam Birla,along with his company Hindalco and a former bureaucrat.

According to a CNN-IBN report theFIR names Birla, Nalco, Hindalco and former coal secretary PC Parakh.

The charges in the FIR reportedly pertain to alleged forgery and financial misrepresentation.

The accused have been booked for criminal conspiracy under section 120B of the Prevention of Corruption Act.

CBI has alleged that the accused company was wrongfully allocated the Talabira II coal block in Jasukuda district of Orissa in 2005.

The CBI is also currently conducting searches in Delhi, Kolkata, Bhubaneswar and Mumbai in connection with the coal scam.

Birla is the promoter of companies such as aluminium maker Hindalco, mobile carrier Idea Cellular and financial services group AB Nuvo.

Following the FIR, Hindalco's share price dropped 5 percent on the Sensex, while Nalco's tumbled 2 percent in early trade. Shares of Aditya Birla Nuvo were down 2.2 percent.

Coalgate CBI names KM Birla in new FIR Nalco Hindalco shares slide

Birla has been named for the first time in an FIR in the scam . AFP

A year ago, the Hindalco Industries chairman had told stockholders that there was no cause for worry with regard to Coalgate and the company's coal blocks.

"None of the company's coal blocs are stuck," he had said at the company's Annual General Meeting, assuring shareholders that there would be no impact on their projects.

Only last month, the CBI questioned Congress MP and industrialist Naveen Jindal in connection with the coal blocks allocation scam.

In June, an FIR was already registered against Jindal and his company for alleged misrepresentation of facts to bag the Amarkonda Murgadangal coal block in Jharkhand in 2008.

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