Neyveli Lignite denies fraud charges

July 5th, 2011 - 9:22 pm ICT by IANS  

Chennai, July 5 (IANS) Integrated mining cum power generation company Neyveli Lignite Corporation Ltd (NLC) Tuesday said the complaint filed by its workers’ union about alleged fudging of its accounts was an attempt to defame the state-run company.

“We are following the accounting practices of power major NTPC. Our accounts have been audited internally and by Comptroller and Auditor General (CAG). None of them have raised any objections,” the firm’s chairman and managing director A.R. Ansari told IANS on phone from Delhi.

A special court hearing Central Bureau of Investigation (CBI) cases here Monday ordered the CBI to register a case against Ansari on a complaint lodged by M. Selvaraj, president of the NLC Workers Solidarity Union.

“The complaint is an attempt to defame the Navratna status public sector company,” Ansari added.

Meanwhile, in a statement issued Tuesday, the company refuted allegations of fudging of its accounts.

“The statement that there has been misappropriation of funds to the tune of Rs.10,000 crore and the alleged manipulation and cooking up of NLC balance sheet is totally baseless and made on malafide intention,” it said.

According to the company, the complainant is taking only portions of the balance sheet to show a deficit of Rs.10,000 crore.

Refuting allegations of irregularities in awarding tenders, NLC said bids with value of Rs.1 crore and above are governed by the terms and conditions of the pact with Transparency International.

According to the company, procedures prescribed by the Central Vigilance Commission (CVC) are being followed.

Refuting allegations that Ansari owned coal mines in Indonesia and the thermal power project at Tuticorin is mainly for his benefit, NLC said that it has signed fuel supply agreement with Mahanadi Coal Fields for three million tones per annum and the balance will be sourced from Coal India Ltd.

“Ansari does not have any stake in Indonesian coal mines and presently the company has no plan to import coal directly for Tuticorin thermal power station,” NLC said.

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