New Delhi: A Special Central Bureau of Investigation (CBI) court on Friday convicted Gondwana Ispat Ltd and its director Ashok Daga for misrepresenting facts for allocation of a coal block in Maharashtra.
The arguments on sentence/fine to be heard later in the day.
In 2016, the Enforcement Directorate (ED) had attached assets worth Rs. 1.67 crores under Prevention of Money Laundering Act (PMLA), in the case of alleged coal block allocation case against Daga.
The investigations had revealed that Daga had purchased a Mercedes Benz Car of Rs. 35.85 lakh out of Proceeds of Crime.
Another piece of land measuring 854 sq, mtrs and cash of Rs. 14.50 lakhs was recovered during the search operation at his residence.
As per reports, Daga, was involved in the Coal Block case as he submitted application to the Ministry of Coal requesting for allocation of Ekarjuna Extension coal block in Warora, for their proposed washing-cum-Sponge Iron Plant without incorporation.
The Coal block was allocated for use of the coal in the Sponge Iron Plant. Daga without fulfilling his obligation by setting up the sponge iron plant, transferred his shares and the shares of his group companies and family to others at a premium, thus making an illegal gain of Rs. 1.67 Crores, which constituted proceeds of crime.
Earlier, a special court had framed charges of cheating and criminal conspiracy against Gondwana Ispat Ltd and its Director in a coal block allocation case for allegedly misrepresenting facts to get a coal block in Maharashtra allocated to it.
The firm was allocated Majra coal block in 2003 and an FIR was lodged against it in 2014. The court had summoned both the accused after taking cognizance of CBI charge sheet which alleged that Daga had made "unsubstantiated claim even towards financial preparedness and tie-up regarding iron ore with Odisha government".