FIR registered taking cognisance of DRI’s probe into ‘trade-based money laundering’ and ‘artificial inflation’ in coal imports.
New Delhi: The CBI has registered a case against officials of three top public sector firms for allegedly causing a loss of Rs 487 crore to the government exchequer by importing inferior quality coal from Indonesia and passing it off as a superior one.
The case was registered taking cognisance of the Directorate of Revenue Intelligence’s investigation into “trade-based money laundering” by “artificial inflation” of coal imports.
The companies involved are NTPC, Metals and Minerals Trading Corporation (MMTC) and Aravali Power Company Private Ltd (APCPL).
According to DRI, MMTC Ltd, Tamil Nadu Newsprint and Papers Ltd (TNPL) and Coastal Energy Pvt Ltd (CEPL) colluded with foreign firms of the CNO Group and imported at least 186 consignments of coal between 2010 and 2015 by intentionally declaring the wrong value, which was inflated.
DRI said the companies had also shown ‘over-invoicing’ in the imports between 2011-12 and 2014-15.
The FIR registered by the CBI names Ahmed A. R. Buhari, promoter of Coastal Energy Private Limited, Channi and unidentified officials of NTPC, MMTC and APCPL.
“These companies entered into a criminal conspiracy among themselves with the view to cheat the government of India,” a CBI officer told ThePrint.
“We have booked them under the charges of criminal conspiracy, cheating and provisions of the Prevention of Corruption Act,” the officer added.
The FIR says that CEPL became a successful bidder in contract for supply of coal to NTPC and APCPL and had back-to-back agreements with them.
“CEPL was sourcing coal of Indonesian origin with lower GCV (gross calorific value) through their intermediary firms in Dubai,” the FIR said.
“Thereafter, on the basis of inflated invoices and manipulated tests reports, this coal was sold to MMTC through CEPL as coal of higher grade,” it added.
The FIR also states that during import of these consignments, CEPL and MMTC refrained from availing the customs duty exemption available for coal to avoid submission of factual documents and hide the actual value of import.
“The official concerned of NTPC and APCPL should have insisted on fulfillment of these obligations by the supplier. But they accepted coal as supplied to them by the private parties,” the CBI officer said.
“The fraudulent transaction was done with active participation of public servants of NTPC, APCPL and MMTC by way of misuse to their official positions,” the officer added.
The CBI said that MMTC and CEPL have imported 90 and 57 consignments respectively during 2011-12 to 2014-15 for the supply to NTPC and APCPL.
“MMTC and CEPL declared inflated values of these consignments and NTPC and APCPL made payments to them,” the FIR said.
“It has been found that over-invoicing of more than R 363 crore was done on the coal import by MMTC,” it said.