ED attaches assets in coal block case

The Enforcement Directorate has attached assets worth ₹101 crore in connection with the money laundering probe against Jayaswal Neco Industries Limited in a coal block allocations case.

The action has been taken on the basis of an FIR registered by the Central Bureau of Investigation (CBI), which has also filed a chargesheet against the company and its directors.

The ED alleged that the company got the Gare Palma-Sub Block IV/4 coal block using fraudulent means. The company also allegedly resorted to illegal use of coal mined in their captive power plant without any permission from Central government.

“As per allocation letter, the company had to wash the coal in a washery to 20% ash level and the middling/rejects produced during the process [were] to be used in its captive power plant. However, the coal was used directly in their sponge iron plant and the plant, without setting up a washery or without any approval for its direct use,” said the agency.

The ED probe revealed that the company had extracted 3.8 million tons of coal during 2006-2015 from the coal block. In June 2017, the agency made the first attachment of assets worth ₹208 crore.

The company had infused huge capital by issuing large number of fresh shares for the purpose of funding the implementation of ongoing expansion projects including integrated steel plant and mine development.

“That share capital to the extent of ₹101 core was benefit accrued to the company. Accordingly, its office and factory building worth ₹80 crore at Integrated Steel Plant in Raipur and land worth ₹21 crore in Bilaspur have been attached,” said an official.

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