JSPL slips about 13% in two sessions as CBI court summons Naveen Jindal

MUMBAI: JSPL has resumed sell-off for second straight session after the CBI Special Court summoned Naveen Jindal in connection with the coal allocation scam.

Former Jharkhand chief minister Madhu Koda and 13 others have also been summoned as accused by a trial court in connection with the Amarkonda Murgadangal coal block allocation scam case.

The stock fell 4.27 per cent in intraday trade today. Yesterday, the stock slipped over 8%.

According to TOI report, the chargesheet alleges that the Naveen Jindal Group "misrepresented" facts and was shown favour by the Jharkhand government which dropped other firms from its recommendation for allocation of coal blocks.

Meanwhile, investors will feel the jitters as the crucial case related to allocation of Gare palma coal blocks comes up for hearing at the Delhi high court today.

JSPL was the highest bidder for Gare Palma IV/2&3 Rs 108/tonne but the bids were rejected by the government. The company has challenged government’s decision. The blocks have reserves of ~155 million tn

DELHI has made Coal India interim custodian for blocks till final decision is announced. CIL is free to dispose coal from the blocks.