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

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code