Enforcement Directorate (ED) investigating coal block allotment scam has filed a supplementary chargesheet against Jharkhand Inspat Pvt. Ltd. (JIPL) and two its directors namely Ram Swarup Rungta and Ram Chandra Rungta committing money laundering to purchase 25.54 acres land in Ramgarh worth Rs assets worth Rs. 3.93 Crore.

The said land property was attached by the ED in February last year under provisions of the Prevention of Money Laundering Act. The supplementary chargesheet was submitted before a special PMLA court at Rouse Avenue Court in New Delhi.

ED lodged the FIR against the company and its director in April 2014 on the basis of FIR lodged by the CBI.

Notably, in March 2016, JIPL and its directors were held guilty by the special CBI court, New Delhi for misrepresentation of facts and forging the documents to get coal block at North Dadu in North Karanpura in 2006 in Jharkhand.

The company is engaged in the sponge iron business. They were awarded four years of rigorous imprisonment. Both of them were granted bail by the court. 

The CBI is probing alleged irregularities in allocation of coal blocks to various private companies across the country following a Supreme Court order based on a 2012 CAG report citing anomalies.

When the ED started probe it discovered movable and immovable properties worth Rs 25 crore were raised by the company and its directors through share application money from different companies.

Since, the company managed coal block allotment through the fraudulent means; the assets raised were classified as proceeds of the crime which under PMLA is a punishable crime.