New Delhi [India] October 1 : Rouse Avenue District Court in New Delhi on Monday convicted five accused, including R.S. Rungta, then Managing Director of Rungta Projects Ltd., in a case related to allegations of false claims for allocation of coal blocks in Jharkhand.
CBI registered the case against the accused on April 22, 2015, which pertains to the allocation of the Hutar Sector-C and Hurilong coal blocks, located in the state of Jharkhand, to Rungta Projects Ltd. by the 36th Screening Committee of the Ministry of Coal.
It was alleged that Rungta Projects Ltd. submitted an application dated December 30, 2006, to the Ministry of Coal, seeking the allocation of the Hutar Sector-C coal block in Jharkhand. The company claimed that it was an independent mining entity and had entered into an agreement with another company designated as the End-Use Company, with a firm back-to-back tie-up for the supply of coal to their sponge iron plant in Hazari Bagh, Jharkhand. It was further alleged that M/s Rungta Projects Ltd. made false claims in the feedback form regarding the existing capacity of the end-use project, the acquisition of land for the project, and the investment made thus far. Additionally, the company concealed previous coal block allocations made to its group company.
During the course of the investigation, it was revealed that Rungta Projects Ltd. had indeed made false claims regarding the capacity of the end-use project, the acquisition of land, and the investments made, all of which were crucial indicators of the company's preparedness for the project. The company also deliberately concealed information about the previous coal block allocation to its group company.
CBI filed a chargesheet on June 30, 2015, and a supplementary chargesheet on January 29, 2018 against the accused persons. After trial, the Court held five accused guilty and convicted them.