FOUR YEARS RIGOROUS IMPRISONMENT WITH FINE OF RS. ONE CRORE TO THEN PROMOTER DIRECTOR OF A PRIVATE COMPANY IN A COAL SCAM CASE

Press Release
New Delhi, 01.05.2018

The Special Judge, CBI Cases, Patiala House CourtS, New Delhi has today sentenced Shri Ashok Daga, then Promoter Director of M/s Gondwana Ispat Ltd to undergo four years Rigorous Imprisonment with fine of Rs.One crore. A fine of Rs.60 lakh has also been imposed on M/s Gondwana Ispat Ltd.

CBI had registered a case against a private company i.e M/s Gondwana Ispat Ltd, Nagpur and its then Promoter Director Sh. Ashok Daga on 07.08.2014 under sections 120 B r/w 420 of IPC on the allegations that Sh. Ashok Daga as Director of “Gondwana Ispat Ltd.” requested the Ministry of Coal in April, 2000 for allocation of coal block whereas the Company was incorporated only in October, 2001. It was further alleged that Ministry of Coal allocated ‘Majra’ coal block in the year 2003 on the assurance of the company that it shall install the plant/extension of plant & develop coal mine and the entire coal mined from the said coal block shall be consumed in the proposed sponge iron plant at Warora, District-Chandrapur (Maharashtra). However, the accused disposed off the equity of the company by way of entering into an agreement with purchasers without any intimation or permission from the Ministry of Coal, without installing the plant & developing the coal mine, thus violating the terms and thereby obtaining huge gains.

After investigation, CBI filed charge sheet against M/s Gondwana Ispat Ltd. and Shri Ashok Daga, then promoter Director of the company in the Competent Court, Delhi.

The Trial Court convicted the company M/s Gondwana Ispat Ltd. and Shri Ashok Daga, then Promoter Director of said private company on 27.04.2018


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