Big news! Illegal subsidy from Mahavitraan to ‘that’ steel company in Jalanya

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Mumbai: Information has come to light that subsidy is being given to this steel company in Jalna by Mahavitaran in an illegal manner. It has been revealed in a letter that so far crores of rupees have been paid to this company as per one crore rupees per month due to non-deposit of the certificate.

In this regard, Akola-based energy social worker Ashiq Chandrana has already written a letter to the higher authorities of Mahavitaran and complained about the illegal subsidy. Chandrana is also a former consumer representative of the Maharashtra Electricity Regulatory Commission. According to his letter, ‘M/s Kalika Steel Jalna Private Limited as a new company has applied for subsidy i.e. concession in electricity payments from Mahavitaran as per the scheme of Industries Department. This grant is for a limited period only. However, after the expiry of the subsidy limit, the company changed its name to Gajkesari Steel and Alloy Private Limited. With this new name, the company once again applied for subsidy in electricity payments. Mahavitaran has started giving subsidy of Rs.1 crore per month to this newly named company without any guarantee of certificate. This is causing loss to Mahavitran and alternatively state government revenue.’

In this regard, according to the documents in the Company Registration Office, Mumbai, it is clear that M/s Kalika Steel Jalna Private Limited has changed its name to Gajkesari Steel and Alloy Private Limited. The registered office of this company is at Srikanth Chambers, Sion-Trombay Road, Chembur. However, the company’s factory is located in Jalna. The Income Tax Department raided the same factory and related premises and seized Rs 58 crore in cash and jewelery and total assets of Rs 390 crore.