The Enforcement Directorate (ED) has filed a Prosecution Complaint (chargesheet) before a Chennai court against Ahmed AR Buhari and others in a money laundering case of over valuation of coal prices whereby the Public Sector Undertakings paid higher price for the purchase of lower quality of coal. The agency has also sought confiscation of properties of the accused worth Rs 565 crore.
The court has taken cognizance of the Prosecution Complaint.
The ED had initiated money laundering investigation on the basis of an FIR registered by the CBI, New Delhi against Ahmed AR Buhari, Promoter of Coastal Energy Pvt Ltd, Chennai and other unknown officials of PSUs under various sections of Indian PenaL Code and relevant provisions of the Prevention of Corruption Act.
The investigation in the matter was also conducted by the Directorate of Revenue Intelligence (DRI) and a show cause notice to the party has been issued under the provisions of Customs Act, 1962.
The ED probe revealed that Buhari is controlling the companies Coastal Energy Private Limited, Chennai, Coastal Energen Private Limited, Coal & Oil Group Dubai and other offshore entities located in Mauritius and British Virgin Islands.
“The PSUs were supplied coal of lower calorific value instead of the higher specification for which the tenders were floated and executed by the CEPL or MMTC and the coal was supplied by CEPL either directly or through MMTC on the strength of overvalued invoice for lower quality supported with fraudulent Certificate of Sampling and Analysis (COSA) whereas the original COSA depicting the genuine quality of coal was suppressed,” the ED said in a statement.
Investigation further revealed that Buhari generated proceeds of crime (POC) to the tune of Rs 564.48 crore from the over valuation of coal. Buhari had diverted the proceeds of crime through various companies and finally integrated the same in the installation of a power plant by another company Coastal Energen.
The prosecution complaint has been filed against Buhari, Coastal Energy Private Limited, Chennai, Coastal Energen Private Limited, Chennai, CNO DMCC, Dubai, CNO LLC, Dubai, Precious Energy Holdings Limited, British Virgin Island and Mutiara Energy Holdings Limited, Mauritius. All the six accused companies are managed, controlled and beneficially owned by Buhari, the agency said.
“Land, plant and machinery besides other assets of power plant of Coastal Energen Pvt. Ltd to the extent of Rs 564.48 crore was also provisionally attached earlier and the same is prayed for confiscation through this prosecution complaint,” it added.