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The Central Bureau of Investigation (CBI) filed an FIR against city-based business group Jayaswal Neco Limited in the Coalgate scandal on Friday. This is the 20th FIR in the coal scam in which so far two chargesheets have been put up and four cases closed. The Neco group had been allotted mines in neighbouring state of Chhattisgarh for its different companies. In the present case, Jayaswal Neco, which is the flagship company, was allotted the Gare PalmaIV/4 blocks. According to a CBI source, the company was originally supposed to use coal extracted from this mine in its sponge iron plant, pegged to have a capacity of one lakh tons. But, instead, the company built a plant with just a quarter of the stated capacity and rest of the coal was used in its captive power plant. Both the units are located at Raipur. CBI conducted searches at Neco's premise at Nagpur as well as Raipur and Raigarh in Chhattisgarh.

"The company resorted to excess mining from 2007 using the coal in its power plant. Though it was in the knowledge of the coal controller and state government authorities, no action was taken. There was a clear stipulation that no coal mined from such blocks shall be sold or used except in the proposed sponge iron plant. The company has allegedly resorted to illegal use of the coal mined from this block by using it directly in its power plant without getting the central government's permission," said the CBI press release.

Jayaswal Neco has responded saying that the excess mining of coal was according to the revised mining plan which was approved by the ministry of coal. It has also refuted the charges of the diversion of coal saying that it was used in specified end-use units which included the sponge iron and power plant. It also clarified that the company's statement was based on media reports as it has not got a copy of the FIR.

Prior top this, an FIR was registered against AMR Industries, a company earlier under the Neco banner. Arvind and Ramesh Jayaswal from the promoter's family were booked. But their names were removed when the charge sheet was put up recently as this company went to the Abhijeet Group headed by their brother Manoj Jayaswal after family partition of the business.

There are charges against this company of having misrepresented facts for getting a coal block allotted. Media baron Congress MP Vijay Darda is also named in this charge sheet, for hiding factual details and using his influence in getting the coal mine for AMR Industries. At the same time, CBI has closed the cases against Darda and the Manoj Jayaswal-run Jas Infra in the Coalgate affair. This is the third FIR registered by the CBI against a company from the region. Over a fortnight ago, a case was registered against Virangana Steels and before that it was Central Cables.

Source-On Request