Coalscam: 'Naveen Jindal was central figure in conspiracy'

Industrialist Naveen Jindal was the "central figure" in the entire criminal conspiracy in the Jharkhand's Amarkonda Murgadangal coal block allocation scam case, a Special court today said while ordering framing of charges against the Congress leader and 14 others.
The court also said that a facade of companies was prima facie created as a "smokescreen" to cover up the "illegal" act of paying off Rs two crores to former MoS for Coal Dasari Narayan Rao by Jindal in lieu of favouring his two firms by securing allocation of a coal block in 2008.
Dealing with the materials placed before him by the prosecution, Special CBI Judge Bharat Parashar said, "the aforesaid discussion of the overall facts and circumstances prima facie show the nature of overt and covert acts on the part of accused 7, Naveen Jindal in the entire criminal conspiracy.

"In fact his role has come out to be that of a central figure around whom the entire criminal conspiracy revolved," the judge said in the 136-page order.
The court said Jindal's role "as being the common central
thread running through all the said transactions through his various group or associated companies becomes evident at least for a prima facie view. In other words his role even travels beyond the area of even grave suspicion as regard his complicity."

The court said it was prima facie clear that three accused firms, M/s Jindal Steel and Power Limited (JSPL) and Gagan Sponge Iron Private Ltd (GSIPL) and Jindal Realty Pvt Ltd (JRPL) were being promoted and controlled

Primarily by Jindal
only and no one except him could have been the beneficiary thereof.
"A facade of companies prima facie appears to have been created as a smokescreen to cover up the actual transfer of money so as to avoid liability under any law/ rules/ regulations," it said.
The court also said "the circumstances clearly present a picture where the corporate veil of various companies involved in the alleged money trail needs to be lifted as prima facie it is crystal clear that various corporate entities were used to cover up the actual illegal acts of making a pay off to Rao by Jindal in lieu of help rendered by him in securing allocation of Amarkonda Murgadangal coal block in favour of accused 1, M/s JSPL and accused 2, M/s GSIPL."

The judge, while pronouncing the order, said "charges to be framed against all the accused under sections 120-B (criminal conspiracy) read with 409 (criminal breach of trust) and 420 (cheating)of IPC and under sections 13(1)(c), 13(1)(d) of Prevention of Corruption Act."
The court fixed May 11 for formally framing the charges against the accused.
Apart from Jindal, Rao and Koda, the court also ordered to put on trial former Coal Secretary H C Gupta and 11 others, who were chargesheeted by the CBI in the case pertaining to alleged irregularities in allocation of Amarkonda Murgadangal coal block to JSPL and GSIPL in 2008.

Besides them, the other accused are -- Rajeev Jain, Director of Jindal Realty Pvt Ltd, Girish Kumar Suneja and Radha Krishna Saraf, Directors of GSIPL, Suresh Singhal, Director of New Delhi Exim Pvt Ltd, K Ramakrishna Prasad, Managing Director of Sowbhagya Media Ltd and chartered accountant Gyan Swaroop Garg. These accused are currently out on bail.
(Reopens LGD 27)
Regarding the charge of criminal conspiracy, the court said evidence for this offence "is hard to come up but the same is to be ascertained from overall facts and circumstances of a given case".
"Accordingly, if the entire process of allocation of impugned coal block is seen and analysed while also keeping in mind the money trail whereby Rs two crores came to be transferred to Rao by Jindal, the same prima facie reflects the active collusion between the public servants involved in the process and the private parties in whose favour the coal block stood alloted," it said.

The court also observed that it was prima facie clear that no coal block could have been alloted to GSIPL "but for the criminal conspiracy hatched by Naveen Jindal roping in various other accused persons as conspirators at different points of time."
It said both Suneja and Saraf submitted inflated claims in application form and the feed back form submitted on behalf of GSIPL with a view to "present a higher status/stage of preparedness and towards its techno-economic viability."
Detailing the roles of Rao and Gupta, the court observed they consciously chose to overlook all such misrepresentations or false and highly inflated unsubstantiated claims of the firm even though they were writ large on the face of record.

"Thus, the facts and circumstances of the case as discussed above indicates a well-chalked out plan whereby allocation of a captive coal block was procured...," it said.
Regarding Koda, the court noted that it was prima facie clear that being the then Chief Minister, he "ensured" that recommendation for the entire coal block be made to Ministry of Coal in favour of Naveen Jindal Group of companies only.
The court also said that it was prima facie clear that Rao was in "active agreement and connivance" with Jindal and his group of companies so as to ensure allocation of the block for exclusive use of JSPL and GSIPL.

The court also observed that the facts and circumstances
brought on record "prima facie establishes the hatching of a criminal conspiracy after careful calculation and minute planning."
"The material on record further shows that the project was executed in a manner marked by perfect professionalism. It takes effort to pose through the well layered and circuitous route but once two and two are four together, things fall in place," it noted.
"Facts on record reveals that a unified central command was actually in control of the affairs, which certainly went beyond the lawful cooperate cooperation. The Central control is so pervasive that the corporate veil is rendered too thin to obstruct a clear view," it said.

Regarding Gupta's role, the court observed that it cannot be strictly bracketed merely as that of an advisor to the Minister-in-charge.
"A secretary cannot run away from his responsibility by merely stating that being secretary he either acts as an advisor to Minister-incharge or relies upon his subordinate officers. If that be so then the post of Secretary of a Ministry will clearly stand reduced to that of a post office, merely forwarding files from its Ministry to the Minister- incharge and receiving it back from there without application of mind," it said.
It said that although the minister-in-charge for coal was to rely upon the recommendation of the screening committee but it was expected that the committee must have applied its mind properly before making the recommendation.

The court said Gupta, being the then Coal Secretary, was the custodian of important nationalized natural resources of the country that is coal and he was duty bound to ensure its proper allocation in an objective manner.
"As a public servant and having been entrusted with dominion over the said natural resources he failed to exercise that reasonable care which was expected of him as such public servant and he rather connived with other accused persons by entering into a criminal conspiracy and in the process allowed the important nationalized natural resources of the country to be misappropriated by JSPL and GSIPL and prima facie without any public interest," it said.
The court said that it was prima facie clear that Gupta had abused his official position while ensuring allocation of the block in favour of Jindal's firms.