ED initiated the investigation in the case under the PMLA on the basis of a FIR registered by Central Bureau of Investigation against Jayaswal Neco Industries Ltd and its directors
The Enforcement Directorate (ED) has attached assets worth Rs 206 crore in connection with its probe against Jayaswal Neco Industries Limited in a coal block allocation case under Prevention of Money Laundering Act (PMLA).
ED initiated the investigation in the case under the PMLA on the basis of a FIR registered by Central Bureau of Investigation against Jayaswal Neco Industries Ltd and its directors.
The CBI has filed a chargesheet before the Patiala House Court against Jayaswal Neco Industries Ltd and its directors for the alleged commission of offence under Section 120B read with 420 and 406 of the Indian Penal Code.
"It was alleged that Gare Palma- Sub Block IV/4 Coal block was obtained by Jayaswal Neco Industries Ltd through fraudulent means by making misrepresentation and the Company resorted to illegal use of coal mined in their Captive Power Plant (CPP) without any permission from central government," a senior ED officer stated.
It was further pointed out that as per allocation letter, the company had to wash the coal in a washery to 20 percent ash level and the middling and rejects produced during the process to be used in its Captive Power Plant . However, the coal was used directly in their sponge iron plant and Captive Power Plant, without setting up a washery or without any approval for its use in the Captive Power Plant directly.
During the investigation by ED, it emerged that the company had extracted 3.8 million tonnes of coal during the period 2006-2015 from the said the Sub Block IV/4 Coal field.
The company used the entire coal mined from the Gare Palma IV/4 coal block for production of steel and power in its plant, therefore the profit accrued out of sale of such steel and power has been accumulated in the reserve and surplus of the company and the company during the period under consideration has expanded its production capacity and fixed assets.
"After deducting the royalty and the additional cess paid by the company, it is seen that the company had benefited to the extent of Rs. 206 Crore on account of extraction of coal from the the coal block which is the part of the proceeds of crime derived as a result of criminal activity relating to the schedule offence," the officer added.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Coal scam")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}