ED freezes Rs 1,023 crore assets in Goa illegal iron-ore mining case

Panaji, June 21 (IANS) The ED attached movable and immovable properties, including those in Singapore, valued at Rs 1,023.85 crore in a matter related to illegal iron-ore mining in Goa by the Salgaocar Group and its associated firms, an official said on Sunday.

The provisionally attached movable and immovable properties include assets located in Singapore, the official said in a statement.

The Enforcement Directorate (ED), Panaji Zonal Office, provisionally attached movable and immovable properties valued at Rs 1,023.85 crore vide Provisional Attachment Order dated June 19 under the Prevention of Money-Laundering Act (PMLA), 2002, it said.

The matter pertains to large-scale illegal iron-ore mining by the Salgaocar Group and its associates (the “AVS Group”), the ED said.

The attached assets comprise 99 immovable properties situated in India (Rs 459.10 crore), 31 immovable properties situated in Singapore (Rs 471.32 crore) and equity shares in Indian companies (Rs 93.42 crore), the agency said.

These assets were held in the names of the Estate of Late Anil Vassudeva Salgaocar (through its administratrix Lakshmi Anil Salgaocar), Salgaocar Mining Industries, Shantilal Khushaldas & Brothers, S. Kantilal & Co, Salitho Ores, Vertex Newton Projects and Subarnarekha Port, the ED said.

The federal agency initiated an investigation based on an FIR registered by the CID Crime Branch, Goa, for offences under the IPC, 1860, the Prevention of Corruption Act, 1988, and the MMDR Act, 1957.

The Supreme Court in its judgments dated April 21, 2014 and February 7, 2018, also held that all mining undertaken in Goa after November 22, 2007 (till issue of fresh mining leases) was illegal and without lawful authority, the ED said.

The investigation by the federal agency revealed that the AVS Group operated 10 mining leases during 2007-12 and generated proceeds of crime of Rs 2,492.95 crore from the illegal extraction, sale and export of iron ore, said the ED.

The illegally mined ore was exported at grossly undervalued prices to shell entities (Special Purpose Vehicles) incorporated in the British Virgin Islands, which acted as mere paper intermediaries and resold the ore to China, generating further offshore trade profits of Rs 2,744.89 crore, the ED said.

The total Proceeds of Crime thus work out to nearly Rs 5,237.84 crore. These funds were layered through BVI and Singapore-based SPVs, utilised to acquire substantial movable and immovable assets abroad, and partly routed back into India in the guise of share capital, it said.

–IANS

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