CBI registers FIR against Megha Engineering, officials of NMDC & MECON in Rs 315 crore corruption case; stock slips

NMDC shares lost over 7 per cent in Monday's morning deals and touched the intra-day low of Rs 220.05 apiece on BSE. The selling pressure came after eight officials of the NMDC Iron and Steel Plant NISP and NMDC, and two officials of MECON were also named in the FIR for receiving an alleged bribe in clearing bills of Rs 174 crore of Megha Engineering in connection with works related to Jagdalpur integrated steel plant, PTI reported.

As of 10:02 a.m., shares of NMDC traded over 0.54 per cent or Rs 1.3, lower at Rs 237.3 apiece on BSE. The market capitalisation of the company at around the same time stood at Rs 69,528.62 crore. 

On April 13, the CBI registered an FIR against Hyderabad-based Megha Engineering and Infrastructure Ltd, which was the second-biggest buyer of electoral bonds worth Rs 966 crore, in an alleged bribery case.

According to the FIR made public on Saturday, the CBI had registered a preliminary enquiry on August 10, 2023, about the alleged bribery in Rs 315 crore project related to works of an intake well and pump house and cross-country pipeline at the integrated steel plant Jagdalpur which was awarded to the company.

Megha Engineering had emerged as the second-biggest buyer of electoral bonds and donated the highest amount of about Rs 586 crore to the BJP, according to the data released by the Election Commission on March 21. 

The company also donated Rs 195 crore to BRS, Rs 85 crore to DMK, and Rs 37 crore to YSRCP. The TDP got about Rs 25 crore from the company, while the Congress got Rs 17 crore. The JD-S, Jana Sena Party, and the JD-U got smaller sums ranging from Rs 5 crore to Rs 10 crore.

NMCD share price: Past performance

In a year, NMDC shares have gained over 113 per cent, against Nifty50's rise of over 26 per cent. 

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