CHENNAI: The Enforcement Directorate’s Chennai unit on Saturday said it has attached Rs 298 crore worth of immovable properties of Chettinad Group’s South India Corporation Ltd (SICPL) in a money laundering case involving Tamil Nadu Generation and Distribution Corporation (Tangedco).
This is the second major attachment in the case registered by ED under Prevention of Money Laundering Act based on an FIR filed by DVAC in March 2023, alleging a loss of Rs 908 crore to Tangedco caused by SICPL in coal handling. A few former top officials of Tangedco had also been named in the FIR.
ED had attached fixed deposits of Rs 358.2 crore of the company in April 2023 in this case after conducting searches at 10 locations, including places linked to the company, a former director (coal) of Tangedco and some other government officials.
The investigation has found that in 2001, SICPL was handed a contract for handling Tangedco’s coal at the Vizag port for five months. However, before the bids were opened, M/s Western Agencies Madras Pvt Ltd had filed a civil suit before a Chennai court and the injunction was extended till 2019.
From 2011 to 2019, SICPL had paid Rs 217.31 crore as levy to the Vizag Port Trust, but claimed reimbursement of Rs 1,126.1 crore from Tangedco for the same, ED said. The difference of Rs 908.79 crore was the loss caused to Tangedco, the ED said.
Tangedco link
This is the second major attachment in the case registered by ED under PMLA based on an FIR by DVAC in March 2023, alleging a loss of Rs 908 crore to Tangedco by SICPL in coal handling