ED files charge sheet in money laundering case over valuation of coal price

The Enforcement Directorate (ED) on Thursday said that its has filed a charge sheet against Ahmed A.R. Buhari and six others in a money laundering case of over valuation of coal prices.

The charge sheet was filed before a special court in Chennai.

The court after receiving the charge sheet took cognizance of it and fixed the matter for the next date of hearing.

The ED initiated the money laundering investigation on the basis of an FIR registered by the Central Bureau of Investigation (CBI), against Buhari, the promoter of Coastal Energy Pvt. Ltd, Chennai, and others unknown officials of PSUs under various section of the IPC, and section 13(2) read with section 13(1)(d) of the Prevention of Corruption Act.

The investigation was also conducted by the Directorate of Revenue Intelligence (DRI) and a showcause notice to the party has been issued.

In the course of the investigation, the ED learnt that Buhari was controlling the Coastal Energy Private Limited, Coastal Energen Private Limited, Coal and Oil Group Dubai and other offshore entities located in Mauritius and the British Virgin Islands.

The PSUs were supplied coal of lower calorific value instead of the higher specification for which the tenders were floated and executed by the CEPL or MMTC and the coal was supplied by CEPL either directly or through MMTC on the strength of overvalued invoice for lower quality supported with fraudulent Certificate of Sampling and Analysis (COSA) whereas the original COSA depicting the genuine quality of coal was suppressed.

Investigations further revealed that Buhari generated proceeds of crime (POC) to the tune of Rs 564.48 crore from the over valuation of coal.

Buhari had diverted the POC through various companies and finally integrated the same in installation of power plant by his another company Coastal Energen.

"The prosecution complaint has been filed against Buhari, Coastal Energy Private Limited, Chennai, Coastal Energen Private Limited, Chennai, CNO DMCC, Dubai, CNO LLC, Dubai, Precious Energy Holdings Limited, British Virgin Island andA Mutiara Energy Holdings Limited, Mauritius. All the six accused companies are managed, controlled and beneficially owned by Buhari," said an ED official.

Land, Plant and Machinery and other assets of Power Plant of Coastal Energen Pvt. Ltd to the extent of Rs 564.48 crore was also attached earlier.

--IANS

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