The Enforcement Directorate (ED) has decided to register money laundering cases against those firms which are under the scanner of CBI, including Jindal Steel and Power Limited (JSPL) and Rathi Steel and Power.
ED officials said the agency has issued directions to its various zonal offices across the country to initiate investigations under the Prevention of Money Laundering Act (PMLA) in the financial dealings of the firms which have also been booked by CBI in this case.
During the same investigation, the ED probe will also look into the issue of foreign exchange “contravention” by these firms which have now been asked by the agency to furnish relevant documents.
The firms against whom the cases have been registered include Castron Technologies Ltd., Jharkhand Ispat Private Limited, Pushp Steel and Mining Pvt Ltd., JSPL, RSPL, Grace Industries, Jharkhand Ispat, Green Infrastructure, Hindalco, BLA Industries and Nav Bharat Power Private Limited.
The agency, according to sources, has taken cognisance of the over 17 FIRs filed by CBI in this case and it will investigate if these firms laundered illegal money and generated “proceeds of crime” in the entire process of coal allocation.
The probe by both the agencies in this case is being monitored by the Supreme Court.
CBI registered the FIRs after it conducted three preliminary enquiries related to coal block allocations between 2006 and 2009, 1993 and 2004 and projects given under a government scheme.
According to the Comptroller and Auditor General (CAG), an estimated loss of Rs. 1.86 lakh crores was caused to the national exchequer in the coal block allocation scam.
According to sources, the ED is expected to complete its probe in this case by early May after it which it will share its report with the apex court.
The agency will largely focus on the transactions and business dealings of the firms which were allocated the coal blocks during the investigation period and once that is established, the ED will identify the assets and properties to be attached under money laundering laws.
Sources said that in cases where CBI has filed closure reports, the ED will still pursue investigations and see if there is any illegal activity which qualifies to be a violation of the PMLA or the Foreign Exchange Management Act (FEMA).
CBI is also expected to complete its probe in the case by this month-end.
The Supreme Court also recently sought the assistance of the CVC to examine all cases in the coal blocks allocation scam in which there were divergent views between the investigating officer and CBI’s head office on filing charge sheets.
It asked the Chief Vigilance Commissioner and two Vigilance Commissioners to give their suggestions whether the cases can be closed or CBI can go ahead with the filing of charge sheets in them.
