This story is from May 31, 2013

CBI seeks state nod to quiz babus

CBI, which is investigating the coal scam, wants to interrogate Basu, who superannuated in 2009, for illegal allocation of a coal block to Vini Iron and Steel Udyog in 2008.
CBI seeks state nod to quiz babus
RANCHI: The Central Bureau of Investigation (CBI) has sought Jharkhand government's permission to probe the role of some bureaucrats, including former chief secretary A K Basu, for their alleged role in irregularities in the allotment of coal blocks.
CBI, which is investigating the coal scam, wants to interrogate Basu, who superannuated in 2009, for illegal allocation of a coal block to Vini Iron and Steel Udyog in 2008.
Sources in CBI said Basu made the recommendation for allotment of the block to Vini during his tenure. Madhu Koda was the then chief minister and the company was promoted by some of his close associates.
"The name of Vini Iron and Steel was not recommended in the state initially. It was only after the company was acquired by close aides of Koda that a recommendation was made and it was allotted Rajhara coal block, which has an estimated reserve of 17.09 million tonne. The change in ownership coincided with the change in view of the Jharkhand government. It is also reflected in the recommendation made by the chief secretary," said the source.
He added that several developments, including the change in ownership of the company and the joint venture, also took place during 2008-09, which raised suspicions about the role of the government officials in the scam.
"The company had showed its net worth to be over Rs 850 crore in its application to acquire the block. Actually, it was not more than Rs 70 crore," said the source.
State officials declined to comment on the matter.
End of Article
FOLLOW US ON SOCIAL MEDIA