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CBI quizzes Nava directors
The CBI on Wednesday questioned two directors of Hyderabad-based Nava Bharat Power Private Ltd in connection with alleged misrepresentation of facts by the company for fraudulently seeking coal blocks.
Promoters and directors of the company Y Harish Chandra Prasad and P Trivikrama Prasad were questioned at the agency headquarters here during which the duo was quizzed over projection of inflated net worth of the company in its application seeking coal block in 2006, agency sources said.
The company was allocated Rampia and Dipside of Rampia coal block in Chhattisgarh in 2008.
CBI had booked the company and the directors for alleged cheating and under certain provisions of the Prevention of Corruption Act.
In the FIR, the agency alleged that the company, in order to claim a coal block, inflated its net worth, an important criteria for determining eligibility of a firm, to nearly Rs2,000 crore by claiming they were supported by companies without having any legal basis for such a claim, the sources said.
CBI further alleged that the Coal Ministry had kept a minimum net worth of Rs50 lakh per mega watt of the proposed power plant as a pre-qualification criteria for applicant companies, the sources said.
The FIR also alleged that the company with a proposed capacity of 2,240 mega watt would not have pre-qualified for the recommendation of the Ministry of Power but for this deception.
The promoters of the company are also alleged to have sold their stake to Essar Power and its subsidiary company at a substantial profit of Rs200 crore.
The CBI on Wednesday questioned two directors of Hyderabad-based Nava Bharat Power Private Ltd in connection with alleged misrepresentation of facts by the company for fraudulently seeking coal blocks.
Promoters and directors of the company Y Harish Chandra Prasad and P Trivikrama Prasad were questioned at the agency headquarters here during which the duo was quizzed over projection of inflated net worth of the company in its application seeking coal block in 2006, agency sources said.
The company was allocated Rampia and Dipside of Rampia coal block in Chhattisgarh in 2008.
CBI had booked the company and the directors for alleged cheating and under certain provisions of the Prevention of Corruption Act.
In the FIR, the agency alleged that the company, in order to claim a coal block, inflated its net worth, an important criteria for determining eligibility of a firm, to nearly Rs2,000 crore by claiming they were supported by companies without having any legal basis for such a claim, the sources said.
CBI further alleged that the Coal Ministry had kept a minimum net worth of Rs50 lakh per mega watt of the proposed power plant as a pre-qualification criteria for applicant companies, the sources said.
The FIR also alleged that the company with a proposed capacity of 2,240 mega watt would not have pre-qualified for the recommendation of the Ministry of Power but for this deception.
The promoters of the company are also alleged to have sold their stake to Essar Power and its subsidiary company at a substantial profit of Rs200 crore.
