CHENNAI: The Enforcement Directorate arrested Ahmed AR Buhari, promoter of Chennai-based Coastal Energy Private Limited (CEPL), in the Rs 564.48-crore money-laundering case related to alleged over-valuation of coal prices, whereby Public Sector Undertakings paid higher price for its purchase.
“The PSUs were supplied coal of lower calorific value instead of the higher specification for which the tenders were floated and executed by CEPL or Metals and Minerals Trading Corporation of India (MMTC). CEPL supplied the coal either directly or through MMTC. The over-valuation of lower quality of coal was done on the basis of fraudulent Certificate of Sampling and Analysis (COSA) whereas the original COSA depicting the genuine quality of coal was suppressed,” the ED said.
Probe revealed that Buhari generated proceeds of crime (POC) to the tune of Rs 564.48 crore from the over-valuation. It diverted the POC of Rs 557.25 crore through CEPL and CNO Group entities in UAE and routed the same back to India through Precious Energy Holdings Ltd, BVI and Mutiara Energy Holdings Ltd, Mauritius to invest in Coastal Energen Pvt Ltd. The POC in Coastal Energen Pvt Ltd’s possession has already been provisionally attached in 2020, the ED added.
The ED initiated a money-laundering probe on the basis of an FIR registered by the CBI against Buhari and other unknown officials of PSUs. The Directorate of Revenue Intelligence was also involved in the probe and a showcause notice was issued under the provisions of Customs Act, 1962. The probe revealed that Buhari is controlling the companies CEPL, Coastal Energen Pvt Ltd, Coal and Oil Group Dubai and other offshore entities located in Mauritius and British Virgin Islands.