jindal steel

The Central Bureau of Investigation (CBI) lodged an FIR against Congress MP & Chairman of Jindal Steel & Power Ltd, Naveen Jindal and former Minister of State for Coal Dasari Narayan Rao on Tuesday, 11th June 2013 for their alleged role in the coal-blocks allocation scam.

jindal steel

This is the first time CBI has alleged a government functionary of being involved in coal-blocks allocation scam. CBI investigations revealed that JSPL has given a bribe of Rs 2.25 crore to Dasari Narayana Rao, presenting it as an investment in his company. Jindal’s New Delhi Exim had taken a loan of Rs 2.25 crore from Jindal Reality to invest in Rao’s company Saubhagya Media. Jindal further, got the same from Gagan Sponge Iron Pvt. Ltd.

Jindal Steel Coal Block

CBI claimed that Jindal was allotted Amarkonda Murgadangal coal block in Birbhum, Jharkhand in 2008 on the basis of false reports. In its petition it said that it owns only three coal mines, whereas, it has six coal mines in reality. It lied because government does not allot many coal mines to one company. Jindal has been allotted 11 mines. Jindal’s company New Delhi Exim invested Rs 2.25 Cr. in Rao’s company Saubhagya Media to get the allocation of these mines.

This allegation on JSPL also affected its shares which came down by 24.3% on BSE. They ended 15.2% lower at Rs 226.35 each, while the benchmark Sensex fell 1.53% to end at 19,143 points on June 11, 2013.

About Jindal Steel

Jindal Steel is a sub-division of the multi billion Jindal group. Jindal steel is headed by Naveen Jindal, the son of O.P Jindal who founded the business group.  In terms of tonnage, the company is the third largest producer of steel in India.