Jindal Steel shares fall 6% as CBI chargesheets Naveen Jindal in coal scam

Shares of Jindal Steel and Power declined as much as 6 percent today after the CBI chargesheeted its chairman Naveen Jindal in connection with allocation of Amarkonda Murgadangal coal block as part of investigation into the Coalgate. At 10:15 am, the stock was off lows at Rs 139.75, down 4%. According to a PTI report, apart from Jindal, ex-Minister of State for Coal Dasari Narayan Rao, former Jharkhand Chief Minister Madhu Koda, former Coal Secretary H C Gupta and 12 others have also been chargesheeted by CBI in connection with the case. The companies that have been charged include Jindal Steel and Power Ltd, Jindal Realty Pvt Ltd, Gagan Infraenergy Ltd, New Delhi Exim Pvt Ltd and Soubhagya Media Ltd. They have been booked for offences under sections 120-B (criminal conspiracy) read with 420 (cheating) of IPC and under provisions of the Prevention of Corruption Act. [caption id=“attachment_2220018” align=“alignleft” width=“380”]  Naveen Jindal. AFP[/caption] The case pertains to alleged irregularities in allocation of Amarkonda Murgadangal coal block in Jharkhand’s Birbhum district in 2008 to Jindal Group firms– Jindal Steel and Power Ltd (JSPL) and Gagan Sponge Iron Pvt Ltd (GSIPL). Six other individuals named as accused in the CBI charge sheet are – Gyan Swaroop Garg, Suresh Singhal, Rajeev Jain, Girish Kumar Suneja, R K Saraf and K Ramakrishna Prasad. According to sources, the agency has alleged in the charge sheet that Jindal group firms had misrepresented facts to acquire the coal block in 2008. In its FIR lodged in the case, CBI had alleged that Jindal group was shown favour by the Jharkhand Government which had dropped other firms from its recommendation for allocation of coal block in the state in 2007. The FIR was categorical that Ministry of Power was against the proposal for allocating Amarkonda Murgadangal coal block to JSPL and GSIPL. However, JSPL, in a statement, denied the allegations made against it and its management and said it would take appropriate remedy in accordance with law. “We are shocked to know from the media about filing of a charge sheet by CBI with respect to allocation of a coal block. The said allocation was made to the company on merits. During the course of the investigation the company and its officials fully cooperated with the authorities, and whenever asked, explained and provided all the supporting documents,” it said. With inputs from PTI