CBI files FIR against five companies in coalgate scam

Five companies have been charged in the "coalgate" scam with the CBI filing first information reports on charges of cheating. The agency has launched raids at about 30 locations in 10 cities including Kolkata, Patna, Hyderabad, Dhanbad, Nagpur, Mumbai and Delhi.

The CBI has filed First Information Reports or FIRs against five private firms that were allocated coal blocks in Jharkhand and Chhattisgarh including JLD Yavatmal, Jas Infrastructure, AMR Iron Steel, Vimmi Iron and Steel and Navbharat Power.

The CBI is investigating whether companies misreported their financial or technical qualifications to get allocation of valuable coal fields, possibly in collusion with government officials.

Of the five companies booked today, two are linked to Congress MP Vijay Darda. He has a 7-per cent stake in Jas Infrastructure along with his son,  Devendra. Devendra is also a director in JLD Yavatmal.  Darda told NDTV yesterday that he had in no way influenced the process of allocation.

The CBI is conducting raids across several cities including Kolkata, Patna, Hyderabad, Dhanbad, Nagpur, Mumbai and Delhi in the inquiry which stems from a complaint filed by BJP leader Prakash Javadekar with the government's anti-graft department or Central Vigilance Commission (CVC).

Last month, the government auditor, the Comptroller and Auditor General or (CAG), said that 142 coal fields allocated between 2004 and 2009 had allowed private firms to garner windfall benefits of upto Rs1.86 lakh crores due to fact that the coal mines were sold at highly undervalued rates,rather than being auctioned.