Investigation under PMLA against firms illegal granite mining'

The Directorate of Enforcement has appraised the Madras High Court that it has already initiated investigation under Prevention of Money Laundering Act, 2002 and registered an Enforcement Case Information Report (ECIR) against firms illegally mining granite in Madurai district.
In its preliminary reply by A Venkadesh Babu, Assistant Director of the Directorate here, to a PIL filed by 'Traffic' Ramaswamy, he said they had registered an ECIR on September 18 2013 and initiated investigation under PMLA on the basis of FIRs and the May 19, 2012 report of U Sagayam, the then Madurai District Collector on illicit quarrying of granites.

The reply said ECIR had also been registered against PRP Exports and others and investigation initiated under PMLA.
The petitioner alleged that money laundering to the tune of Rs 1,00,000 crore came to light only after Sagayam wrote to the Principal Secretary, State Industries Department, on May 19, 2012 that his predecessors and entire government authorities in the district had failed to unearth it.
He further alleged that as per the report the estimated loss was more than Rs 16,000 crore even in 2012.
He also charged some officials of state-owned Tamil Nadu Minerals Limited with colluding with granite companies in the district for illegal quarrying of granites, which were transported and stored without any check.

Ramaswamy alleged Sagayam's report, which said three granite companies in Melur taluk of Madurai District had earned money from illegal quarrying for several years by depriving the livelihood of several farmers, had been leaked.

The petitioner said he had made a representation to the authorities, including the Central Vigilance Commissioner, Delhi, to take appropriate action against illegal mines functioning in the state under Prevention of Money laundering Act 2002.
As there was no action, he filed a PIL, to which the Directorate filed a preliminary reply today.
The First Bench, comprising Chief Justice Sanjay Kishan Kaul and Justice M. Sathyanarayanan before which the matter came up for hearing, adjourned the matter for further hearing to two weeks.