The Enforcement Directorate (ED) in Chennai South India Corporation Ltd’s (SICPL) immovable properties worth INR2.98 billion (USD35.6 million) as part of its corruption investigation into the company under the Prevention of Money Laundering Act, 2002.
This action is the result of the ED investigation that found the building materials dealer, SICPL, made wrongful gains worth INR9.08 billion during its handling of coal at Vizag Port during 2011-2019 where it paid a INR2.1 billion levy to the authorities, while Tamil Nadu Generation and Distribution Corporation (TANGEDCO) paid INR11.26 billion to SICPL as reimbursement of the levy. The attachment of property means SICPL cannot use or sell it.
The ongoing investigation also revealed that the coal handling contract was awarded to SICPL in 2001 for only five months. However, due to a civil litigation that began before the bids were opened for tender, the court ordered several injunctions till 2019. In April 2023, the ED had frozen the fixed deposits of SICPL worth INR3.5 billion.
The registration of a first information report by the Directorate of Vigilance and Anti-Corruption against TANGEDCO and SICPL was the basis of the ED investigation.
