The Enforcement Directorate (ED) has attached immovable assets worth Rs. 169 crore in connection with their ongoing probe against M/s Topworth Urja and Metals Limited in a coal block allocation case.
The firm which was formerly M/s Shree Virangana Steels Ltd was allocated the Marki, Mangli-II, III and IV coal blocks in eastern Maharashtra. According to ED, the firm “through fraudulent means by making misrepresentation got allotment” of the coal blocks.
The agency has initiated investigation under Prevention of Money Laundering Act, 2002(PMLA) on the basis of a FIR registered by Central Bureau of Investigation (CBI) against M/s /s Topworth Urja and Metals Limited and its directors for commission of offence under section 120 B,420, 465, 468 and 471 of Indian Penal Code which deal with criminal conspiracy, cheating, forgery and using forged document as genuine.
During the investigation under PMLA, it was revealed due to illegal allocation of coal blocks, the company benefited to the extent of Rs.169. 64 crore.
“Investigation conducted so far resulted into identification proceeds of crime in the form of non-agricultural land and agricultural land in Nagpur, plant and machinery, land and building of M/s Topworth Urja and Metals Limited, Nagpur totalling to Rs.169.64 crore and all these assets have been provisionally attached under PMLA,” the agency stated on Tuesday.
The probe revealed that 9,21,748 million tonne (MT) of coal was extracted illegally during the period 2011-12 to 2014-15 and there was 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.
“Further, there was benefit to the extent of Rs. 20.40 crore on account of sale of excess power generated out of captive power plants and sold to the connected grid. The company also generated the share capital by issuance of equity and preference shares on high premium pursuant to application and allocation of coal block and benefited to the extent of Rs. 96.72 crore,” the agency said.