ED attaches Rs 169-crore property of agency below PMLA in Maharashtra coal blocks allocation case

Tribune News Service
New Delhi, November 3

The Enforcement Directorate (ED) said on Tuesda that it had issued a provisional attachment order under Prevention of Money Laundering Act (PMLA) to seize assets worth Rs 169 crore of a firm in connection with its probe into the coal blocks allocation case.

Officials in the agency said the case pertained to Topworth Urja and Metals Ltd (formerly Shree Virangana Steels Ltd) that was allocated the Marki Mangli-II, III and IV coal blocks in eastern Maharashtra.

Later in a statement the ED alleged that the firm got the coal blocks “through fraudulent means and by misrepresentation”. It further said, “Due to 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 ED said, “A total of 9,21,748 MT of coal was extracted illegally during 2011-12 to 2014-15 and there was illegal gain to the extent of Rs 52.50 crore by extracting the coal from these blocks. The company also had 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.”

The agency in the statement also alleged that the company “generated share capital by issuance of equity and preference shares on high premium after application and allocation of coal block and benefitted to the extent of Rs 96.72 crore”.

The attached properties include agricultural and non-agricultural land in Nagpur and machinery of some factories, the ED said.

The ED and the CBI have been investigating the coal blocks allocation on charges of money laundering and corruption respectively.

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