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CBI begins probe into Rs 487 crore coal imports irregularities

NEW DELHI: The CBI has launched an investigation into alleged irregularities in the invoicing of inferior quality coal imported from Indonesia which was passed on to state run power generation companies, NTPC and Aravali Power Company as 'superior quality', causing a loss of Rs 487 crore. 

The over-invoicing of imported coal imported between 2011-12 and 2014-15 was done in connivance with officials of NTPC, MMTC and also APCPL, a joint venture of Delhi and Haryana government with NTPC, a probe by directorate of revenue and intelligence in the matter had revealed. 

On the basis of DRI probe, CBI has filed an FIR against unknown officials of the PSUs, and promoter - Ahmed A R Buhari of Chennai-based private company M/s Coastal Energy Private Limited (CEPL). 

The modus operandi adopted by accused persons was that NTPC and APCPL floated global tenders for the supply of imported coal of a certain grade and quality, which was crucial for achieving certain levels of power plant operations. 

NTPC, MMTC and APCPL operate coal-based thermal power plants for which they import coal through global tenders. MMTC and CEPL emerged successful bidders for the supply of coal. 

The CEPL, instead of importing coal from Indonesia directly, routed their supply through Dubai-based sister concerns, enabling them to manipulate invoices and quality certification. The Dubai-based companies entered into agreements with Indonesian exporters for inferior quality coal.