Coal Block Scam: CBI Court Frames Charges Against Former IAS Officer, Others

The Special Judge (CBI) for Coal Block Cases at Rouse Avenue District Court has framed charges in the 2007 coal block corruption case against former IAS officer D.G Philip, who was the Managing Director of Maharashtra State Mining Corporation Ltd (MSMCL) and Avinash Manohar Rao Warjukar, who was the Chairman of MSMCL from December 2006 to June 2010.In 2006, the Ministry of Coal had allocated four coal blocks namely (i) Warora, with estimated reserves of 73 million MT Coal, (ii) Agarzari, with estimated reserves of 137 million MT Coal, (iii) Marki-Zari-Jamni-Adkoli, the smallest coal block with estimated reserves of just 20 million MT Coal and (iv) Gare-Palma II, with estimated reserves of 175 million MT Coal to MSMCL.Since MSMCL had no financial wherewithal to carry out mining, it required a reputed Joint Venture Partner (JVP) for this purpose. The prosecution in the case is related to alleged corruption in the appointment of Financial Consultant, selection of Joint Venture Partner and execution of Joint Venture Agreement for Marki- Zari-Jamni-Adkoli coal block (Adkoli Coal Block).Special Judge Arun Bhardwaj said that there is sufficient material to frame charges against Sunil Hi- Tech Engineers Ltd. (M/s SHEL) under Section 120-B of IPC r/w 420 IPC r/w 13(1)(d) of PC Act, 1988 for entering into criminal conspiracy with the public servants D.G. Philip and Avinash Warjukar for proposing the JV Agreement in such a manner which enabled SHEL to sell its shares in SPV M/s Sunil Hi-Tech Energy Pvt. Limited.“There is sufficient material to frame charge against SHEL u/s 420 of IPC for cheating MSMCL by pledging its shares without following the procedure provided in the JV Agreement,” said the court.However, as SHEL is under liquidation, therefore the company has been discharged u/s 32A of the Insolvency and Bankruptcy Code, 2016.The Director of M/s Sunil Hi-Tech Engineers Ltd., M/s Sunil Hi- Tech Energy Pvt. Ltd. and M/s SHEL Investment Consultancy Pvt. Limited, Sunil Ratnakar has also been discharged as no specific commission or omission was attributable to him in the pledging of shares of M/s SHEL Investment Consultancy Pvt. Limited in favour of M/s JDCL and in the “absence of vicarious liability”, according to the court.Other accused M/s aXYKno (Financial Consultant) and its Director R. Ramakrishnan has been also discharged by the court.With regard to the former IAS officer, the court said, "A-5 D.G. Philip shall be charged u/s 13(1)(d) of P.C. Act on two counts, first, declaring technically ineligible bidders including M/s SHEL as eligible, second, for proposing clauses in JV Agreement permitting sale/transfer/ pledge of shares by JV Partner contrary to terms and conditions of bid documents".The court also framed charges against D.G. Philip for the offence of criminal conspiracy along with Avinash Warjukar for incorporating clauses in JV Agreement permitting the transfer of shares by JV Partner contrary to the bid documents."Charge u/s 13(1)(d) of P.C. Act shall be framed against A-6 Avinash Warjukar for proposing clauses in JV Agreement permitting sale/transfer/pledge of shares by JV Partner and for the offence of criminal conspiracy along with A-5 D.G. Philip for proposing clauses in JV Agreement permitting sale/transfer/pledge of shares by JV Partner," it added.The matter is listed for July 07 for framing of the formal charges against the accused D.G. Philip and Avinash Warjukar.Case Title: CBI v. M/S. Sunil Sunil Hi- Tech Engineers Ltd. AND ORS.Appearance:Advocate Honey Satpal for Sh. Avil Menezes, the Liquidator of the Corporate Debtor A-1 M/s Sunil HI-Tech Engineers Limited.Advocate Vijay Kumar Aggarwal, Counsel for Sunil Ratnakar GutteAdvocates Vikram Hegde and Shri Singh for M/s. aXYKno Capital Services Private Ltd (Financial Consultant) and R. Ramakrishnan,Advocate Rajeev Singh for Dominic Gabriel Philip, IAS.Advocate Amit Band and Sh. Pankaj Kapoor for Avinash Manohar Rao Warjukar.Click Here To Read/Download Order

Coal Block Scam: CBI Court Frames Charges Against Former IAS Officer, Others

Aiman J. Chishti

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