ED Seizes Assets Worth Rs 298 Crore from Chettinad Group in Money Laundering Case

The Enforcement Directorate (ED) announced on Saturday that it has seized assets worth over Rs 298 crore from a company associated with the Chennai-based Chettinad group. This action is part of an ongoing money laundering investigation.

The ED's case, filed under the Prevention of Money Laundering Act (PMLA), originates from a complaint by the Directorate of Vigilance and Anti-Corruption (DVAC). The complaint targets former officials of the Tamil Nadu Generation and Distribution Corporation (TANGEDCO) and South India Corporation Pvt Ltd. (SICPL).

Money Laundering Investigation

According to the federal agency, SICPL was awarded a contract in 2001 for handling coal at Visakhapatnam port. This contract covered coal transportation via rail-sea-rail routes for five months. However, Western Agencies Madras Pvt Ltd. filed a civil suit before a Chennai court even before the tender bids were opened. The court issued injunctions periodically until 2019.

During the period between 2011-12 and 2018-19, SICPL paid Rs 217.31 crore as levy to Visakhapatnam Port Trust. In contrast, TANGEDCO reimbursed SICPL Rs 1,126.10 crore for the same levy.

Financial Discrepancies

The ED highlighted that this discrepancy resulted in a loss of Rs 908.79 crore to TANGEDCO while providing an undue benefit to SICPL. The difference between the amounts paid by SICPL and reimbursed by TANGEDCO represents this financial loss.

A provisional order has been issued to attach assets worth Rs 298.21 crore belonging to SICPL, which is part of the Chettinad Group.

The ED's investigation continues as they scrutinise further financial transactions and potential misconduct related to this case.