Iron ore scam: HC turns down plea to stay CBI probe

The Calcutta High Court today refused to stay the investigation carried out by the CBI into the alleged iron ore scam of about Rs 650 crore in which two companies are involved.

Reshmi Cement located at Jhargram, and Reshmi Metalic located at Kharagpur in West Midnapore district challenged the CBI probe in the High Court on the alleged iron ore scam which took place in 2010.

Advocate U N Lalit, appearing for the two companies urged the High Court to stay the CBI investigation on the ground that it was unconstitutional and not carried out according to the manual of the CBI. Justice Debasish Kargupta refused to stay the CBI investigation and fixed March 16 for next hearing.

During the hearing, it was revealed that the central government introduced a scheme in 2009-2010 to supply iron ore under Private Public Partnership(PPP) mode in the domestic sector. Reshmi Cement and Reshmi Metalic, two companies purchased huge quantity of iron ore but they allegedly exported the material instead of supplying it in the domestic sector, in 2010.

Advocate Himangsu De, counsel of the CBI said that the two companies procured iron ore at low rates but exported the material violating specified norms. They had earned excess amount to the tune of Rs 650 crore by exporting the iron ore. The central government could have earned the excess amount by exporting the same, De said.

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