ED books Dasari, Jindal in coal scam

Days after naming A Raja and Kanimozhi in a offshoot case of the 2G spectrum scam, the Enforcement Directorate (ED) on Monday filed a case under charges of money laundering against former coal minister Dasari Narayana Rao and Congress MP Naveen Jindal in connection with its probe in the coal block allocation case.

The FIR under the Prevention of Money Laundering Act (PMLA) came a week after the ED filed charge sheet against DMK chief M Karunanidhi's wife Dayalu Ammal and others, including Kanimozhi and Raja, for allegedly accepting Rs 200 crore from Swan Telecom in the “garb of legitimate financial transactions, ie as loan or share application money” for allotment of 2G spectrum.

The Enforcement Directorate’s FIR also named members and officials of the 35th screening committee (government-constituted multi-member body), M/s Gagan Sponge Iron Pvt Ltd, M/s Jindal Steel and Power Limited (JSPL), M/s Jindal Realty Pvt Ltd, M/s New Delhi Exim Pvt Ltd and M/s Sowbhagya Media Ltd, besides unknown persons.

The action came after sleuths found multi-layered transactions between firms owned by Jindal and Rao's firms based in Hyderabad, and that “illegal money” was routed for alleged favours given for the allocation of coal firms to Jindal in Jharkhand in 2008 by Rao, claimed sources. Dasari was questioned by the CBI in connection with investigations into coal block allocations.