Coal scam: ED attaches Rs 20-cr assets of private firm, director

The Enforcement Directorate (ED) said on Tuesday it has attached assets worth over Rs 20 crore of a firm and its director in connection with a money laundering case linked to the coal scam probe.

The investigating agency said a provisional order for attachment of properties has been issued under the Prevention of Money Laundering Act (PMLA) against Revati Cements Pvt Ltd (RCPL) and its director Umesh Shahra.

The total value of assets attached is Rs 20.22 crore, it said.

The case is linked to an FIR filed by the CBI in the coal scam case against RCPL, its director Umesh Shahra and coal ministry officials for criminal conspiracy and criminal misconduct in allocation of the Thesgora-B/Rudrapuri coal block in Madhya Pradesh to Kamal Sponge Iron and Steel Pvt Ltd and Revati Cements Pvt. Ltd for their sponge iron and cement plant located in Satna district of the state.

In a statement, the ED said between 2007-2014, RCPL had issued 49,19,173 new shares each priced Rs 100.

"This amount is considered to be proceeds of crime as it is attributed to the illegal advantage accrued to RCPL due to application for and allocation of coal block by misrepresentation and criminal conspiracy," it alleged.

Moreover, part of the proceeds of the crime were utilised by RCPL in purchase of 339.94 acres of land located in Satna district of Madhya Pradesh worth over Rs 13.34 crore and construction work worth Rs 15.61 crore on the land was done has been attached by the ED under PMLA in March this year, the probe agency said.

Investigation revealed that RCPL invested share capital to the tune of more than Rs 3.10 crore in purchasing shares of Thesgora Coal Private Limited, a joint venture of Kamal Sponge Steel and Power Ltd and Revati Cements Pvt. Ltd created for mining purpose.

A piece of land at Sejvaya village in Dhar district of the state, worth over Rs 15.34 crore, of Umesh Shahra, the main beneficiary and decision maker of RCPL, has been attached. Properties worth a total Rs 49.19 crore have been attached by the ED in this case till now, it said.