Nava Bharat Projects Limited, a subsidiary of NBVL, had held 50% equity stake in NPPL , a joint venture (JV) coal company, along with Malaxmi group, another Hyderabad-based company.
The Central Bureau of Investigation (CBI) had chargesheeted NPPL and its directors P Trivikrama Rao and Y Harish Chandra Prasad for allegedly entering "into a conspiracy with unknown officials of ministry and got allocated coal blocks". The chargesheet stated that allocation of coal blocks had enhanced the share value of NPPL and its promoters got a windfall gain of more than Rs 200 crore when the company was sold to EPL.
On Wednesday ED, which also probed the case, provisionally attached properties worth Rs 186.11 crore belonging to NPPL and its promoters.
Following this, NBVL stated on Thursday that "no material progress could be achieved as the coal block was fraught with intractable legal issues like over lapped mine area, forestry clearance etc and even prospecting licence was not made available. No economic value could thus accrue on this coal block".
The company stated in a press release that it had to exit from NPPL "owning to certain corporate differences and owing to JV partner entering into prior financing and controlling understanding with Essar Power Limited for its share".
According to NBVL, its subsidiary's 50% equity stake of power project under development "with several key milestones was agreed to be sold to EPL for a consideration of Rs 169 crore without attributing any value to the shared coal block.".
The company said that its subsidiaries, the properties of which were attach by Enforcement Directorate (ED), "are confident of obtaining appropriate reliefs from the competent authorities and courts and be exonerated of all the alleged offences soon".