The Special Court CBI (Coal Block Allocation Cases) Rouse Avenue District Court has sentenced five accused including R.S. Rungta, then Managing Director of M/s Rungta Projects Ltd, Sanjay Rungta, T.M. Achutan and Shabhu Nath to 02-03 years’ imprisonment with total fine of Rs. 1.6 crore including fine of Rs. 30 lakhs imposed on M/s Rungta Project Ltd in a case related to allocation of coal blocks in Jharkhand.
R.S. Rungta, then Managing Director of M/s Rungta Projects Ltd was sentenced to 03 years’ Imprisonment with fine Rs. 30 lakh, Sanjay Rungta sentenced to 03 years’ Imprisonment with fine Rs.40 lakh, T.M. Achutan sentenced to 03 years’ Imprisonment with fine Rs.40 lakh and Shambhu Nath sentenced to 2 years’ Imprisonment with fine Rs.20 lakh.
CBI had registered the instant case against accused on 22.04.2015 which pertains to the allocation of the Hutar Sector-C and Hurilong coal blocks located in the State of Jharkhand, to M/s Rungta Projects Ltd. by the 36th Screening Committee of the Ministry of Coal.
It was alleged that M/s Rungta Projects Ltd. submitted an application dated 30.12.2006 to the Ministry of Coal, seeking the allocation of the Hutar Sector-C coal block in Jharkhand.
The company claimed that it was an independent mining entity and had entered an agreement with another company designated as the End-Use Company, with a firm back-to-back tie-up for the supply of coal to their sponge iron plant in Hazaribagh, Jharkhand. It was further alleged that M/s Rungta Projects Ltd. made false claims in the feedback form regarding the existing capacity of the end-use project, the acquisition of land for the project and the investment made thus far.
Additionally, the company concealed previous coal block allocations made to its group company.
During the course of the investigation, it is revealed that M/s Rungta Projects Ltd. had indeed made false claims regarding the capacity of the end-use project, the acquisition of land and the investments made, all of which were crucial indicators of the company’s preparedness for the project.
The company also deliberately concealed information about the previous coal block allocation to its group company.
CBI filed a chargesheet on 30.06.2015 and supplementary chargesheet on 29.01.2018 against accused persons. After trial, the Court convicted accused on 30.09.2024 and sentenced them today.
