A Delhi court has issued summons to prominent industrialist Naveen Jindal and former coal secretary PC Parekh, directing them to appear before the court on July 17. The move comes after the court took cognisance of charges against them and several others under provisions of the Indian Penal Code, including criminal conspiracy and cheating, as well as the Prevention of Corruption Act.
The case revolves around alleged irregularities in the allocation of the Gare Palma IV/1 coal block in Chhattisgarh. The court described the record as one of the most voluminous chargesheets among coal block cases.
In addition to Jindal and Parekh, the court also summoned Rakesh Kumar Jindal, Ram Kishore, SK Agarwal, and Jindal Strips Ltd (now Nalwa Sons Investments Ltd). All accused are required to appear on the specified date.
Allegations of Irregularities in Coal Block Allotment
The Central Bureau of Investigation (CBI) alleges that Jindal Strips Ltd was allotted the Gare Palma IV/1 coal block in 1996 for a sponge iron plant with a capacity of 0.6 million tonnes per annum. However, the block was found to contain substantially higher coal reserves than initially stated.
Further accusations by the CBI include the execution of a mining lease beyond the area approved by the Centre, despite the approved mining lease area being fixed at 705 hectares. This alleged irregularity was reportedly regularised by a screening committee in 2005, which also proposed additional land beyond the originally approved area.
The court noted that when Jindal Steel and Power Limited (JSPL) sought approval in March 2004 to increase production at the coal block from 2 million tonnes per annum to 6 million tonnes per annum, the coal ministry identified discrepancies in lease boundaries and instances of excess production, prompting a demand for explanation.
The court's order on Monday, which took cognisance of the charges, sets the stage for further legal proceedings in a case that has drawn significant attention to the country's past coal allocation policies.