ED attaches Chennai firm's land worth Rs 298 crore in alleged Rs 900 crore coal scam
ED initiated investigation based on the DVAC (Directorate of Vigilance and Anti Corruption) case against former officials of TANGEDCO and SICPL into the alleged scam wherein Tangedco was cheated of several hundred crores by SICPL by claiming excessive payment for coal transport from Vishakapattinam port.
Enforcement Directorate (ANI)
CHENNAI: Enforcement Directorate (ED) has provisionally attached immovable properties worth Rs 298.21 crore of South India Corporation Pvt Ltd (SICPL), a group company of Chettinad Group, under the provisions of PMLA (Prevention of Money Laundering Act) in connection with the alleged Rs 900 crore scam in handling coal at Visakhapatnam port for Tamil Nadu Generation and Distribution Corporation (Tangedco).
ED initiated investigation based on the DVAC (Directorate of Vigilance and Anti Corruption) case against former officials of TANGEDCO and SICPL into the alleged scam wherein Tangedco was cheated of several hundred crores by SICPL by claiming excessive payment for coal transport from Vishakapattinam port.
In the latest development, more than 300 acres of land in Cuddalore district owned by SICPL has been attached by ED, according to sources. In April 2023, ED froze Rs Rs 360 crore held in the form of Fixed Deposits lying in the bank accounts of SICPL.
In 2001, contract for handling the coal at the Vizag Port during its transportation via rail-sea-rail route was awarded to SICPL for a period of five months only.
However, even before opening of the bids in the said tender, another firm filed a civil suit before a City court, which had ordered time to time injunction till 2019.
SICPL has paid an amount of Rs.217.31 crore as levy to Vishakapattinam Port Trust for the period between 2011-12 to 2018-19, whereas TANGEDCO had paid an amount of Rs.1126.10 Crore to SICPL as reimbursement of Levy, causing a loss of Rs 908 crore to TANGEDCO and wrongful gain to the company.