The Enforcement Directorate (ED) has attached assets worth over ₹169 crore in connection with a coal block allocation case against Topworth Urja & Metals Limited and others.
The ED probe is based on an FIR registered by the Central Bureau of Investigation against the company, which was earlier known as Shree Virangana Steels Limited, and its directors.
It is alleged that Shree Virangana Steels, by misrepresenting facts, got the allotment of Marki-Mangli-II, III and IV coal blocks. Investigations revealed that over 9.21 lakh metric tonne of coal was illegally extracted from 2011-12 to 2014-15, which resulted in illegal gain to the extent of ₹52.5 crore.
“Further, there was a benefit to the extent of ₹20.4 crore on account of sale of excess power generated out of the captive power plant and sold to the connected grid. The company also generated share capital by issuance of equity and preference shares on high premium, pursuant to the application and allocation of coal block, and benefited to the extent of ₹96.72 crore,” said the agency in a release on Tuesday.
The ED alleged that due to illegal allocation of the coal blocks, the company benefited to the tune of ₹169.64 crore. Accordingly, the agency identified the “proceeds of crime” in the form of land parcels, the company’s plant, machinery and building in Nagpur and attached them under the Prevention of Money Laundering Act.
