Essar Power has denied any involvement in allocation of coal block mines, in an attempt to separate itself from the infamous multi-crore scandal.

Essar Power had acquired power company Navabharat, which was allegedly given coal blocks at throwaway prices, for around 230 crore in 2011. Navabharat Power is one of the five power companies that have been booked by the Central Bureau of Investigation (CBI) for assumed irregularities in allocation of coal blocks.

Essar claimed that it had no dealings with either of the original promoters of Navabharat Power, viz. P. Trivikram Prasad and Y. Harish Chandra Prasad, until the deal, which was hit more than two years after Navabharat Power was awarded with the coal blocks.

The power company also claimed that the acquisition was completely revealed to all relevant statutory authorities of the country.

Distancing itself from the scandal, Essar said, "The acquisition of Navabharat Power was in line with the company's publicly stated strategy of growing its power generation business… and was fully disclosed to all relevant statutory authorities.”

The Comptroller & Auditor General (CAG) has alleged that the government allocated coal blocks at throwaway prices, and estimated that the allotments cost the taxpayers 1.86 lakh crore.