ED files a charge sheet for supplying low-quality coal to PSUs
COAL & MINING

ED files a charge sheet for supplying low-quality coal to PSUs

The Enforcement Directorate (ED) announced that it filed a charge sheet in a money laundering case involving the alleged sale of low-quality coal to public sector undertakings (PSUs) businesses before a special court in Chennai.

The prosecution complaint or charge sheet names A R Buhari as the main defendant, including six companies-

Coastal Energy Private Limited, Chennai, Coastal Energen Private Limited, Chennai, CNO DMCC, Dubai, CNO LLC, Dubai, Precious Energy Holdings Limited, British Virgin Islands, and Mutiara Energy Holdings Limited, Mauritius.

It said the case was about the overvaluation of coal prices, in which PSUs paid a high price for lower-quality coal.

The ED claimed that all six accused entities are managed, controlled, and beneficially owned by Ahmed A R Buhari.

According to the court, the charge sheet was submitted under criminal sections of the Prevention of Money Laundering Act (PMLA) on April 29.

The agency revealed that Bhurani was controlling corporations such as Coastal Energy Private Limited, Chennai, Coastal Energen Private Limited, Coal & Oil Group Dubai, and other offshore entities headquartered in Mauritius and the British Virgin Islands.

ED told the media that the PSUs received coal of lower calorific value instead of the higher specification for which the tenders were floated and executed by the CEPL or MMTC.

The coal was supplied by CEPL either directly or through MMTC on the strength of an overvalued invoice for lower quality supported by a fraudulent certificate of sampling and analysis (COSA). On the other hand, the original COSA depicting the genuine quality of coal was suppressed.

The ED claims that Buhari generated Rs 564.48 crore in proceeds of crime through the overvaluation of coal.

According to the report, Buhari diverted criminal gains through numerous firms before integrating them into building a power plant by his own company, Coastal Energen.

The ED already seized property, plant, machinery, and other assets worth Rs 564.48 crore from Coastal Energen Pvt. Ltd.

As per the ED, the charge sheet requests the confiscation of these assets through this criminal case.

The case against the accused was based on an earlier FIR filed by the Central Bureau of Investigation (CBI).

The agency said that the Directorate of Revenue Intelligence (DRI) investigated the incident, and a show-cause notice to the party was given under the terms of the Customs Act.

Image Source

Also read: State-run power Gencos owe Rs 6,477.5 cr to Coal India Limited

The Enforcement Directorate (ED) announced that it filed a charge sheet in a money laundering case involving the alleged sale of low-quality coal to public sector undertakings (PSUs) businesses before a special court in Chennai. The prosecution complaint or charge sheet names A R Buhari as the main defendant, including six companies- Coastal Energy Private Limited, Chennai, Coastal Energen Private Limited, Chennai, CNO DMCC, Dubai, CNO LLC, Dubai, Precious Energy Holdings Limited, British Virgin Islands, and Mutiara Energy Holdings Limited, Mauritius. It said the case was about the overvaluation of coal prices, in which PSUs paid a high price for lower-quality coal. The ED claimed that all six accused entities are managed, controlled, and beneficially owned by Ahmed A R Buhari. According to the court, the charge sheet was submitted under criminal sections of the Prevention of Money Laundering Act (PMLA) on April 29. The agency revealed that Bhurani was controlling corporations such as Coastal Energy Private Limited, Chennai, Coastal Energen Private Limited, Coal & Oil Group Dubai, and other offshore entities headquartered in Mauritius and the British Virgin Islands. ED told the media that the PSUs received coal of lower calorific value instead of the higher specification for which the tenders were floated and executed by the CEPL or MMTC. The coal was supplied by CEPL either directly or through MMTC on the strength of an overvalued invoice for lower quality supported by a fraudulent certificate of sampling and analysis (COSA). On the other hand, the original COSA depicting the genuine quality of coal was suppressed. The ED claims that Buhari generated Rs 564.48 crore in proceeds of crime through the overvaluation of coal. According to the report, Buhari diverted criminal gains through numerous firms before integrating them into building a power plant by his own company, Coastal Energen. The ED already seized property, plant, machinery, and other assets worth Rs 564.48 crore from Coastal Energen Pvt. Ltd. As per the ED, the charge sheet requests the confiscation of these assets through this criminal case. The case against the accused was based on an earlier FIR filed by the Central Bureau of Investigation (CBI). The agency said that the Directorate of Revenue Intelligence (DRI) investigated the incident, and a show-cause notice to the party was given under the terms of the Customs Act. Image Source Also read: State-run power Gencos owe Rs 6,477.5 cr to Coal India Limited

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