Revelations in September 2012 alleged the involvement of him and his company in the alleged Coalgate scam. His company allegedly gained by making and selling power at high prices. The coal blocks allotted to Jindal Power Limited (JPL) in 1998, during the BJP ruled NDA regime, were followed by allocations under the UPA, which have culminated in making the Jindal Group the largest beneficiary of coal block allocations. It has reserves of 2,580 million metric tonnes of coal, while the second largest beneficiary in the private sector has just 1,500 million metric tonnes. It was alleged that despite having the cheapest coal, Jindal sold power at higher prices – Rs 3.85 per unit in 2011–2012, compared to Lanco's Rs 3.67 and NTPC's Rs 2.20. The previous year, JPL had sold power at an even higher rate of Rs 4.30 per unit. The combination of cheap coal and high power prices explains why Jindal posted Rs 17.65 billion as profits, or 60% of its revenues, while Lanco made a profit of just Rs 1.55 billion, just 12% of its revenues.