BHUBANESWAR: Enforcement Directorate (ED) on Saturday attached `244.89 worth property of Balasore Alloys Limited, Odisha, for defrauding the State Trading Corporation (STC) by Global Steel Holding Limited. The central agency had earlier frozen shares worth over `62 crore in the name of Global Steel's chairman, Pramod Kumar Mittal, in connection with its money laundering probe in the alleged fraud of over `2,100 crore with STC.
The agency had also registered a criminal case under Prevention of Money Laundering Act (PMLA) against Global Steel Holding, its chairman Pramod Mittal and others based on an FIR by Central Bureau of Investigation (CBI).The central agency had stated that the shares were frozen on the reasonable belief that the same were proceeds of crime involved in money laundering. CBI case had been registered on the basis of a complaint filed by the PSU - State Trading Corporation (STC). It was alleged that Mittal committed criminal breach of trust as he failed to make payments as per terms and conditions of the agreement with STC.
According to the complaint, the STC had arranged export of raw material for new steel plants of Global Steel Philippines Inc (GSPI) at Philippines and Bosnia, and also opened a line of credit for the company.
The complaint also stated that despite irregular payments and piling up of credit, STC officials had renewed line of credit to the company.
CBI in its 19-page FIR had also named Lalit Sehgal, former chief executive officer of Global Steel Philippines Inc and 18 other accused, including former chairman and managing director of the STC Arvind Padalai and 18 former executives of the PSU. Global Steel Holdings had approached STC in 2003 seeking assistance in financing facility by issuing Letters of Credit for purchasing raw materials required for their newly acquired steel plants.