Enforcement Directorate (ED) has provisionally attached immovable properties of South India Corporation Pvt Ltd (SICPL), a group company of Chettinad Group, worth 298 crore, in connection with the alleged 900 crore scam in handling coal at Visakhapatnam port for Tangedco.
More than 300 acres in Cuddalore district owned by SICPL has been attached as proceeds of crime by ED.
This is the second major seizure by ED in the case after attachment of fixed deposits worth 360 crore in the accounts of SICPL in April 2023. The federal agency also conducted searches at 10 locations last year including premises of the former director of coal (Tangedco), other govt officials and SICPL.
ED initiated investigation based on the DVAC FIR that SICPL cheated Tangedco by claiming excessive payments for coal transportation from Visakhapatnam port. This loss to Tangedco occurred between 2001 and 2019, as the initial tender awarded only for six months was extended for 19 years based on an injunction petition filed by one of the related parties.
According to the DVAC FIR, SICPL paid just 234.4 crore to Visakhapatnam port for labour as well as levy for the period 2011 to 2016, but claimed 1,267.49 crore from Tangedco without submitting proof.
