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Business honcho Naveen Jindal accuses Zee TV of criminal extortion

New Delhi, Thu, 25 Oct 2012 ANI

New Delhi, Oct. 25 (ANI): Congress Member of Parliament Naveen Jindal on Thursday announced that he has filed a case of criminal extortion against Zee TV for undertaking a sting operation of his company's alleged involvement in scam-tainted coal block allocations.

Jindal alleged that he was asked for cash to stop the publication of a negative story on him.

In a dramatic press conference here, Jindal released video recordings of a counter-sting operation that showed a conversation between a Zee News reporter and his team members.

"Media in our country has to be above suspicion. Media has played a crucial role in our country. Jindal Steel and Power Ltd has faced an incident on which I want to give a pure version. The way Zee TV has carried the news, it has become important for me to share," Jindal claimed at the press conference.

Zee TV denied the allegation made by Jindal.

"This kind of allegation has happened in the past and may happen in the future. It doesn't make any difference to us and we will stick to the truth. These are all pressure tactics," Zee Entertainment Enterprises managing director and chief executive Punit Goenka said.

Zee News had also alleged that Jindal had misbehaved with a team of its reporters after they sought clarifications from him on the allegations levelled against his company for alleged irregularities in allocation of coal blocks.

Zee Group Chairman Subhash Chandra had also said his journalists were not involved in any wrongdoing and asserted that Jindal's accusations were false.

Last month, a coal controller report had recommended to the Inter Ministerial Group (IMG) to de-allocate coal blocks given to Jindal Steel and Bhushan Steel.

The coal controller report covers as many as 18 companies and gave its final recommendations to Coal Minister Sriprakash Jaiswal.

In its report, the CCO has also recommended extension of deadline for many companies as clearances are delayed, while 18 coal block firms are likely to lose their bank guarantees.

The companies were raided by the Central Bureau of Investigation (CBI) after cases were filed against five of them.

The IMG has completed meetings with many companies and one key document that they will look at is the coal controller's report.

Jindal Steel and Power Limited, which is run by Naveen Jindal, has been faulted for not doing enough in its coal block. The coal controller has said in its report that against a total project cost of Rs 422 crore, the company has put in only Rs 9.45 crore and has not started production. The company has been given a lifeline till June 2013 and is recommended for de-allocation after that.

The recommendations along with responses from the coal companies will form the basis of the IMG report that is eagerly awaited. If the coal controller's report is to go by, many companies could lose some bank guarantee and most could get an extension as clearances have also been delayed. (ANI)


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