Coalgate: Another Jindal company under scanner

In more embarrassment for Congress MP and industrialist Naveen Jindal in connection with the alleged coalgate scam, another coal mine block allotted to his company has now come under the scanner.

In the latest case, three Jindal group companies, JSW Steel, Jindal Thermal Power and Jindal Stainless Steel formed a consortium with government-owned Mahanadi Coalfields Limited in 2005 for a coal block in Talcher coalfields in Orissa.

All three Jindal group companies were show caused in 2010 for not carrying out any mining activity from the coal block awarded.

The Congress MP defended himself in the case claiming that he had nothing to do with the companies.

He said, "I have nothing to do with the companies that were served the notice. They are my family companies."

However, CNN-IBN has found out that Naveen Jindal is a director on Jindal Stainless Steel.

The coal field was awarded to the Jindal group and Mahanadi Coalfields Ltd at a time when the block was de-allocated from the original allottee, Kalinga Power.

At the time of the allocation of the block to the Jindal group, Kalinga Power had gone to court against its own de-allocation.