2 Pvt Company Directors Given RI In Coal Block Allocation Case

Designated Court Sentences Directors To 02-03 Years’ Rigorous Imprisonment With Total Fine Of Rs70 Lakh

FinTech BizNews Service 

Mumbai, May 30, 2024: The Special Judge for CBI Coal Cases - 2, Rouse Avenue Courts, New Delhi today sentenced two accused namely Mohan Agrawal and Rakesh Agrawal, Directors of a Nagpur based private company M/s B. S. Ispat Ltd. to 02-03 years’ Rigorous Imprisonment (RI) with fine of Rs.70 lakh including a fine of Rs.50 Lakh imposed on said    private company, in a case related to fraudulent allocation of Marki-Mangli-I Coal Block situated in the State of Maharashtra. Accused Mohan Agrawal has been sentenced to 03 years’ RI with fine Rs.10 lakh and Rakesh Agrawal to 02 years RI with fine of Rs. 10 lakh.

The Central Bureau of Investigation had registered a case on 31.03.2015 on allegations that the accused persons submitted false information regarding existence of the Company while submitting application for the coal block and also during processing of the application for allocation of the coal block. The coal block was allocated for captive use in the proposed Sponge Iron Plant of 3 lakh tonnes per annum capacity. It was alleged that M/s B.S. Ispat Ltd. through Director Mohan Agrawal filed an application dt. 28.06.1999 to MoC for allocation of Marki-Mangli-I Coal Block situated in the State of Maharashtra. Similarly, Rakesh Agrawal as Director of M/s B.S. Ispat Ltd. made correspondences with MoC as well as other institutions for getting allocation of Marki-Mangli-I Coal Block. It was also alleged that the company M/s B.S. Ispat Ltd. diverted the coal for the purpose other than the purpose for which it was allocated.

The Marki-Mangli-I Coal Block situated in the State of Maharashtra was allocated in favour of M/s B.S. Ispat Ltd. by the 15th Screening Committee of MoC. The FIR No.  RC 221 2015 E 005 in the present matter was registered pursuant to the finding of Preliminary Enquiry which was initiated by the CBI on the reference of Central Vigilance Commission. The investigation of coal allocation matters is minutely monitored by the Hon’ble Supreme Court of India.

After investigation, CBI filed chargesheet against the aforesaid three accused on 24.07.2018. 

            The Ld. Court framed charges against the company M/s B.S. Ispat Ltd. and two Directors namely Mohan Agrawal and Rakesh Agrawal. CBI prosecution team examined as many as 31 witnesses in support of the charges. The Ld. Spl. Judge (PC Act)(CBI) (Coal Block Cases),  RADC  vide judgement dt. 27.05.2024 convicted all the three accused viz. M/s B.S. Ispat Ltd., Mohan Agrawal and Rakesh Agrawal and the sentence in the case was pronounced today.

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