CBI has alleged in its FIR that BLA Industries, which has its registered office in Mumbai, got two coal blocks in Madhya Pradesh and was selling coal in the open market. The worth of coal being sold in open market was at least Rs 100 crore annually, official sources claimed.
The company had been allocated two coal blocks—Gotitoria (East) and Gotitoria (West) in Mahapani coalfields of Madhya Pradesh—for use in power plant to be set up by them, they said.
The CBI alleged that the company entered into an alleged criminal conspiracy with unknown public officials of Coal Ministry and changed its end-use. They later got the permission to sell the coal from the fields in open market from the ministry, the sources claimed.
The firm had got coal blocks on June 21, 1996, during the tenure of former Prime Minister H D Deve Gowda.
In its second FIR naming Kolkata-based Castron Mining and Jharkhand-based Castron Technologies, its directors, unknown public servants and private persons, CBI alleged the coal block was allocated in violation of existing guidelines.
Castron Mining Ltd (formerly Castron Technologies Ltd) has got Brahmadiha coal blocks under Giridih coalfields of Jharkhand for use in manufacturing of Iron and Steel.
