Leighton Holding subsidiary, Thiess, is under investigation after the company won a $5 million coal mining deal with a business partner linked to India’s former coal minister.
Thiess and Minecs Finvest Pvt Ltd, which is run by the brother of former coal minister Santosh Bagrodia, won the right to mine a massive coal deposit in Jharkhand state in 2010.
India’s Central Bureau of Investigation is examining how a state-owned electricity provider contracted the partnership to mine the huge coal deposit.
The companies have denied the corruption accusations saying Bagrodia was no longer coal minister when the contract was awarded, according to Fairfax Media.
The Leighton subsidiary is also accused of a number of human rights abuses, after it allegedly forced thousands of poor farming families to leave their homes for just $1 a day in order for the company to build an office.
Leighton last month released a statement stating its overseas corruption problems were limited to Indonesia and Iraq, reports Fairfax.
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