ED attaches assets worth Rs 169 cr in connection with coal block allocation case
Nov 03, 2020
New Delhi [India], November 3 : The Enforcement Directorate (ED) has attached assets worth Rs 169 crore in coal block allocation case in connection with an ongoing probe under the Prevention of Money Laundering Act, 2002 (PMLA), the central agency said on Tuesday.
The ongoing probe is being conducted against Topworth Urja and Metals Ltd. (formerly Shree Virangana Steels Ltd.) in a coal block allocation case under PMLA.
The department had initiated investigations under PMLA on the basis of an FIR registered by Central Bureau of Investigation (CBI) against Topworth Urja and Metals Ltd. and its Directors for the commission of offence under several relevant sections of the IPC.
"The company through fraudulent means by making misrepresentation got allotment of Marki Mangli -II, III and IV block. That 9,21,748 MT of coal was extracted illegally during the period 2011-12 to 2014-15 and there was an illegal gain to the extent of Rs 52.50 crore by extracting the coal from these allocated coal blocks namely Marki Mangli-II and Marki Mangli-III," the statement read.
"Further, there was a benefit to the extent of Rs 20.40 crore on account of sale of excess power generated out of captive power plant and sold to the connected grid," it added.
It had also generated share capital by issue of equity and preference shares on high premium, following the application and allocation of coal block and benefited to the extent of Rs 96.72 crore.
During the investigations under PMLA, it came to light that due to the illegal allocation of Marki Mangli-II and Marki Mangli-III coal blocks the company was benefited to the extent of Rs.169.64 crore.
The investigations have resulted in identification proceeds of crime in form of non-agricultural land and agricultural land in Nagpur, plant and machinery, land and building, totalling Rs 169.64 crore, of Topworth Urja and Metals Ltd.
All these assets have been provisionally attached under PMLA.
Further investigation is underway.
