Special Court Convicts Rathi Steel, Promoters in Coal Scam Case
Special Coal Scam Court Convicts Rathi Steel, Promoters; Sentencing Awaited
The special court hearing cases related to alleged irregularities in coal block allocations, on Tuesday convicted Rathi Steel Private Ltd. and its three promoters. This is the second conviction in the coal scam cases, after Jharkhand Ispat and the company’s promoters RC Rungta and RS Rungta were convicted in March this year.
The three officials convicted are Managing Director Pardeep Rathi, Chief Executive Officer Udit Rathi and Assistant General Manager Kushal Aggarwal. The case relates to irregularities in allocation of Kesla North coal block in Chhattisgarh to Rathi Steel, during the previous United Progressive Alliance government’s tenure.
The special court sent Rathi Steel promoters to one-day judicial custody and will pass orders on the quantum of punishment on July 27.
Senior Public Prosecutor VK Singh said there is no room for leniency and the court should proceed with maximum sentence provided under the law. He alleged that the promoters tried to influence the court during trial.
Rathi Steel promoters had requested for minimum sentence on account of exemplary conduct during the trial.
The Case Against Rathi Steel
Central Bureau of Investigation had alleged that Rathi Steel and its promoters “misrepresented” facts to acquire the coal block. CBI said in its chargesheet that the company made false claims before the screening committee regarding the acquisition of 250 acres of land. Subsequently, the CBI chargesheeted Rathi Steel and its promoters for alleged offences of cheating and criminal conspiracy.
The investigative agency registered a first information report against the company and its officials in 2013.
