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Coalgate: Income Tax, ED scanning finances of 'beneficiary' firms

The Income Tax (I-T) department and Enforcement Directorate (ED) are scanning investments and finances of the firms that are alleged to have illegally benefited in the Coalgate scam.

BT Online Bureau | September 12, 2012 | Updated 14:26 IST

The Income Tax (I-T) department and Enforcement Directorate (ED) are scanning investments and finances of the firms that are alleged to have illegally benefited in the Coalgate scam.

In more trouble for allotees of coal blocks, both the agencies under the Finance Ministry have begun a discreet inquiry into the firms - especially those who have been recently booked by the Central Bureau of Investigation (CBI) in its latest FIR.

CBI, earlier this month, had registered cases against five companies for alleged criminal conspiracy to get coal blocks by fudging their net worth figures and misrepresentation of facts.

FROM THE MAGAZINE:Coal block cancellation: All eyes on Coal India now

While the CBI has has named five companies - JLD Yavatmal Energy Limited, JAS Infrastructure Capital Private Limited, AMR Iron and Steel, Navbharat Power Private Limited and Vini Iron and Steel Udyog Limited - with their 20 directors and unknown government officials , it may register more cases against few other firms who were allocated blocks.

While the agencies are yet to be officially handed over the CBI complaint, they have begun a preliminary exercise to obtain data about the "financial activities" of these firms.

The I-T department could also carry out searches of the official premises of some of the firms against whom they detect contravention of tax laws.

Both I-T department and ED already have information about the finances of few companies who were allocated coal blocks, as the agencies had probed separate cases in this regard last year.

FROM THE MAGAZINE:Coal Minister Sriprakash Jaiswal talks about the scam

While the I-T department carried out a high-profile raid on a coal businessman last year in Jharkhand leading to recovery of cash to the tune of more than Rs 70 crore, ED had probed select coal mining firms during its probe against former Jharkhand chief minister Madhu Koda.

While the I-T department would look to find the evasion of taxes and hiding of profits by suspect firms in the coal business, ED is looking for routing of funds that escaped the eye of the tax and enforcement agencies.

With inputs from PTI

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