The Enforcement Directorate has attached assets worth Rs 169 crore of Topworth Urja Ltd in connection with a money laundering case relating to coal block allocation scam.
The ED had initiated investigation under Prevention of Money Laundering Act (PMLA) on the basis of an FIR registered by the CBI against Topworth Urja & Metals Ltd. (formerly Shree Virangana Steels Ltd.) and its Directors under Indian Penal Code (IPC) Sections relating to criminal conspiracy, cheating and forgery among others.
The firm, through fraudulent means and by making misrepresentation, got allotment of Marki Mangli –II, III & IV coal blocks. As much as 9,21,748 MT of coal was extracted illegally during the period 2011-12 to 2014-15 and there was illegal gain to the extent of Rs 52.50 crore by extracting the coal from these allocated coal blocks namely Marki Mangli-II and Marki Mangli-III, the ED said in a statement.
Further, there was benefit to the extent of Rs 20.40 crore on account of sale of excess power generated out of captive power plants and sold to the connected grid, it further said.
The company also generated the share capital by issuance of equity and preference shares on high premium pursuant to application and allocation of coal block and benefited to the extent of Rs 96.72 crore.