The Enforcement Directorate (ED) has provisionally attached properties worth Rs 1,621.93 crore under Prevention of Money Laundering Act (PMLA) in the case of coal block investigation against Jharkhand-based Corporate Ispat Alloys Ltd. (CIAL).

The provisionally attached properties consist of one biomass power plant, two captive thermal power plants, one ferro alloys plant and Direct Reduced Iron Plant and parcels of land situated at Durgapur, West Bengal and Saraikela, Jharkhand of the Nagpur-headquartered company, the ED said in a statement.

The ED had initiated money laundering investigation on the basis of an FIR dated January 6, 2016 registered by the Economic Offences Wing of CBI, New Delhi, for alleged commission of offences under the Indian Penal Code (IPC) and relevant provisions of the Prevention of Corruption Act against CIAL, promoters of the company and others for alleged criminal conspiracy, cheating and criminal misconduct by the accused persons for obtaining coal block, it said.

“Investigation carried out under the provisions of PMLA revealed that the company fraudulently obtained the Chitarpur coal block through misrepresentation of facts.

Huge capital was later infused in CIAL in the form of equity shares so as to derive and obtain benefits/gains from the allocated coal block,” it said.

It said the shares were allotted at a huge premium. This entire infusion of capital Rs 1,896 crore was done with an intention and in anticipation of undue benefits to be derived and obtained by CIAL in future.

“The proceeds derived from the issue of share capital were further invested in fixed assets and projected as untainted property and given colour of a genuine business investment, whereas, the entire process starting with the application for getting a coal block, to being awarded the Chitarpur coal block, to raising of funds on the strength of tainted property (allocation letter) was a consequence of criminal activities related to the scheduled offences,” it added.a