close
close
ED attaches properties worth ₹298.21 crore of South India Corporation Limited

ED attaches properties worth ₹298.21 crore of South India Corporation Limited

The Enforcement Directorate (ED) has provisionally attached immovable properties worth ₹298.21 crore of South India Corporation Ltd. (SICPL), a group company of Chettinad Group, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

ED initiated investigation based on an FIR registered by the Directorate of Vigilance and Anti-Corruption (DVAC), Chennai, under various sections of IPC, 1860 and the Prevention of Corruption Act, 1988 against the former officials of Tamil Nadu Generation and Distribution Corporation, Chennai (TANGEDCO) and SICPL.

ED investigation revealed that in the year 2001, the contract for handling the coal at Vizag Port during transportation through rail-sea-rail route was awarded to SICPL only for a period of five months. However, even before the opening of bids in the said tender, Western Agencies Madras Pvt Ltd. filed a civil suit in the City Civil Court, Chennai. The court had ordered an interim injunction till 2019.

SICPL paid a sum of ₹217.31 crore (approximately) as dues to Vishakapattinam Port Trust for the period between 2011-12 and 2018-19, whereas TANGEDCO had paid a sum of ₹1,126.10 crore (approximately) to SICPL towards refund of dues. Thus, the difference between the aforesaid amount i.e. ₹908.79 crore (approximately) was the loss suffered by TANGEDCO and the undue gain to SICPL.

In April 2023, ED conducted searches under PMLA, 2002 at various premises of SICPL and others and an amount of ₹358.20 crore in the form of fixed deposits in the bank account of SCIPL was frozen. Further investigation is underway.

This is a Premium article available exclusively to our subscribers. To read over 250 such premium articles every month

You have exhausted your free article limit. Please support quality journalism.

You have exhausted your free article limit. Please support quality journalism.

This is your last free article.