The Enforcement Directorate (ED) has attached the plant and machinery worth ₹ 206 crore of Jayaswal Neco Industries Ltd. at the Dagori Integrated Steel Plant in Chhattisgarh’s Bilaspur in connection with a coal block allocation case.
The CBI, in its own case against the company and its directors, has filed a charge sheet in a Special Court. The agency has invoked provisions related to cheating, criminal breach of trust and criminal conspiracy.
It is alleged that the company got the Gare Palma-Sub Block IV/4 coal block through misrepresentation of facts and also resorted to illegal use of the coal mined in their captive power plant without due permission from the Central government.
“As per allocation letter, the company had to treat the coal in a washery to 20 per cent ash level and the middling or rejects produced during the process were to be used in its captive power plant. However, the coal was used directly in their sponge iron plant and the captive power plant, without setting up a washery or without any approval for its use in the plant directly,” alleged the ED.
An ED probe revealed that the company had allegedly extracted 3.8 million tonnes of coal in 2006-2015 from the block. It used the entire coal for production of steel and power in its plant and, therefore, the profit accrued out of sale of such steel and power has been accumulated in the reserves and surplus of the company.
During the period under consideration, the company expanded its production capacity and fixed assets. “After deducting the royalty and the additional cess paid by the company, it is seen that it benefited to the extent of Rs.206 crore on account of extraction of coal from the said coal block. It, therefore, is part of the proceeds of crime derived as a result of criminal activity,” the ED alleged.
Accordingly, the company’s plant and machinery has been attached under the Prevention of Money Laundering Act.