Coalgate: Now, DMK minister under scanner

By NitiCentral Staff on September 7, 2012

After Union minister Subodh Kant Sahai, yet another UPA minister from DMK S Jagathrakshakan is in dock for his involvement in coal block allocation.
According to a Times of India report, MoS information and broadcasting S Jagathrakshakan’s company J Company JR Power Gen Limited was awarded a coal block in 2007, despite it having no track record in the sector. The Company was barely five days old when it signed a MoU with the state-owned Puducherry Industrial Promotion Development and Investment Corporation (PIPDIC) to stake a claim for a captive coal block.
Jagathrakshakan is considered to be very close to the Karunanidhi family. Meanwhile, the DMK has refuted the charge.
DMK’s T K S Elangovan said, “Jagathrakshakan was not a minister or an MP during that period and as a businessman he had the liberty to enter into an agreement purely on business terms.” He cannot be accused of misuse of coal bock allocation, he added.
J R Power Gen Pvt Ltd, in which minister Jagathrakshakan and his family members were directors, was barely 5 days old when it entered into an MoU with the state-owned PIPDIC on Jan 17, 2007. The agreement was to stake claim for a captive coal block
Jagathrakshakan quit as director of the company in 2009 to contest the Lok Sabha elections but his family members are still part of the board
On July 25 that year, PIPDIC and the investment company and Gujarat Mineral Development Corporation were allocated a coal block in Naini in Orissa
Months later, J R Power sold 51% of its stake to Hyderabad-based K S K Energy Ventures, which then got rights to use the coal block
Source: TOI
Coalgate scam: Timeline
August 17, 2012: CAG tabled report in Parliament, estimates Rs 1.86 crore loss.
August 21, 2012: BJP steps up pressure for Prime minister’s resignation.
August 27, 2012: PM Manmohan Singh makes a statement in Parliament stating that CAG’s observations are disputable.
September 4, 2012: CBI carries out raids in 10 cities and books five firms for lying about their net,worth experience while getting the allocation.
September 6, 2012: IMG begins the process of hearing the reasons for delays from companies.
(With agencies inputs)

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