<div>While the coal block allocation issue cast its shadow on Parliament on 5 September paralysing proceedings for the eleventh day ith BJP remaining unrelenting on the demand for resignation of Prime Minister Manmohan Singh, the probe into the allocations have already started. (<strong>Read: <a href="http://www.businessworld.in/en/storypage/-/bw/coal-issue-stalls-parliament-for-11th-day/519153.0/page/0">Coal Block Issue Stalls Parliament For 11th Day</a></strong>)<br /><br />A total of 10 private sector firms including Usha Martin, Monnet Ispat and Energy and Corporate Ispat have been asked to present their side of the story for the delay in developing coal blocks on the first day of IMG's three-day review meeting, starting 6 September.<br /><br />"Ten coal block holders will make their presentations on the first day of the three-day IMG meeting starting tomorrow. The firms which will make presentation are Usha Martin, Monnet Ispat and Corporate Ispat and Alloys among others," a source close to the development told PTI.<br /><br />He said all the 10 coal block allocates had already been communicated to be present at the Inter-Ministerial Group (IMG) meeting.<br /><br />In total, 35 companies have been asked to present details of investments made till now and the reasons for not starting coal production.<br /><br />Earlier, on 4 September, the Central Bureau of Investigations (CBI) had registered five cases in connection wih the alleged scam in allocation of coal mines and conducted searches in nearly 30 places across the country. (<strong>Read: <a href="http://www.businessworld.in/en/storypage/-/bw/cbi-files-fir-against-5-companies/518568.30752/page/0">CBI Files Cases Against 5 Cos </a></strong>)<br /> <br />After registering five FIRs in court, CBI teams fanned out to nearly 10 cities including Delhi, Mumbai, Kolkata, Patna, Hyderabad, Dhanbad and Nagpur and searched premises of owners of some companies.<br /> <br />The companies named in the FIR by the CBI are Vini Iron and Steel, Nav Bharat Steel, JLD Yavatmal which is said to be linked to the family of Congress MP Vijay Darda, JAS infrasrtucture of Abhijeet Group and AMR Iron and Steel and their directors and unknown government officials, the CBI said.<br /> <br />The Ruias-owned Essar Power on 5 September clarified that its acquisition of Navabharat Power Pvt Ltd (NPPL) — one of the five companies raided by the CBI in connection with the coal block allocation scam — was "transparent" and NPPL was never its front company.<br /><br />The agency, which had registered a Preliminary Enquiry in June this year, has slapped charges of cheating and suppression of facts against the companies.<br /> <br />The IMG, headed by Zohra Chatterji, additional secretary, Coal, was set up in July to recommend action against the coal block allottees for not meeting timelines set for beginning production.<br /><br />B K Jhawar-promoted Usha Martin had been allocated Lohari coal block in Jharkhand for making steel in 2005. Monnet Isapt and Energy, promoted by Sandeep Jajodia, was given the Utkal B2 block, aimed at using as a raw material for producing sponge iron, in Odisha back in 1999.<br /><br />Corporate Ispat and Alloys, which is promoted by Manoj Jayaswal, got the Chitarpur block in Jharkhand in September 2005 for producing sponge iron.<br /><br />Usha Martin's Lohari block has already been recommended once for de-allocation by the IMG as "there was hardly any physical progress or investment reported", but it will be reviewed once again, as Coal Secretary S K Srivastava desired.<br /><br /><strong>Stalemate In Parliment</strong><br />Lok Sabha and Rajya Sabha were adjourned till noon on 5 September after Opposition triggered ruckus on the issue and the Lower House adjourned for the day minutes after it re-assembled.<br /><br />When the Rajya Sabha met at noon, a scuffle broke out between Naresh Agrawal (SP) and Avtar Singh Karimpuri (BSP) during introduction of a Bill seeking to provide reservation in promotion to SC/ST in government jobs.<br /><br />The bill was introduced by minister of state for personnel V Narayansamy amid commotion due to the scuffle and slogan shouting by BJP on the coal block allocation issue.<br /><br />As the unruly scenes continued, the House was adjourned till 2 PM.<br /><br />Amid uproar over the coal issue in the Lok Sabha, members of the DMK, a constituent of the ruling UPA alliance, as also AIADMK were in the Well with DMK members holding placards against the upcoming visit of Sri Lankan President Mahinda Rajapaksha.<br /><br />In the melee, the government withdrew the Securities and Exchange Board of India (Amendment) Bill, 2009 in Lok Sabha.<br /><br /><strong>Acquisition of Navabharat Power Legitimate: Essar</strong><br />The Ruias-owned Essar Power said its acquisition of Navabharat Power Pvt Ltd (NPPL) — one of the five companies raided by the CBI in connection with the coal block allocation scam — was "transparent" and NPPL was never its front company.<br /><br />Stating that it had paid Rs 230 crore to acquire NPPL in two tranches in 2010 and 2011, three years after the company was allocated two coal mines in Odisha, Essar Power said it had "no dealing with either of the original promoters until this transaction".<br /><br />Essar Power "categorically denied" allegations that Navabharat was its 'front' company and asserted the deal was "legitimate".<br /><br />"Following the acquisition, Essar Power has invested more than Rs 500 crore in developing the project and has also achieved financial closure, with ICICI Bank having underwritten debt financing of more than Rs 3,720 crore," the company said in a statement. "The project is currently awaiting certain government approvals," it added.<br /><br />In a separate statement, Navabharat Group said it had sold its 50 per cent in NPPL to Essar Power "in a transparent and diligent manner and full disclosures were made to the stock exchanges on July 13, 2010 and April 20, 2011".<br /><br />The sale, it said, followed Malaxmi Group - the other promoter in NPPL, selling its stake to Essar Power "in total disregard to the interest of the other investor" (Nava Bharat Group).<br /><br />"...equity divestment (50 per cent in NPPL) was due to exigencies beyond the controls of the Nava Bharat Group and was in the best interest of its shareholders," the Hyderabad-based firm said.<br /><br />The "active management" of NPPL, including the pursuit of the coal block at the relevant time, was with Malaxmi Group-appointed Managing Director, it added. <br /><br /> </div>
