The directorate of enforcement (ED) has provisionally attached 20 immovable properties worth about ₹31.30 crore as part of its money laundering investigation into Concast Steel & Power Ltd (CSPL) and its promoters. With the latest attachment, the total value of assets attached in the case has increased to about ₹777.10 crore.
The attachment was carried out by ED's Kolkata zonal office under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
According to ED, the attached assets comprise residential houses, commercial units, flats and land parcels located in West Bengal, Uttar Pradesh, Uttarakhand and Delhi.
The agency alleged that the properties are beneficially owned and controlled by Sanjay Kumar Sureka, promoter of Concast Steel & Power, but were held either in his own name or in the names of relatives, employees, associates and shell companies to conceal the proceeds of crime.
Second Supplementary Prosecution Complaint
ED has also filed a second supplementary prosecution complaint before the Special PMLA Court in Kolkata as part of its ongoing investigation.
According to the agency, the complaint names 63 additional accused, including individuals, companies, limited liability partnerships (LLPs), partnership firms and proprietary concerns, who allegedly participated in laundering the proceeds of crime.
ED said the supplementary complaint is based on further investigation that uncovered additional evidence linking these individuals and entities to the alleged offence of money laundering.
With the filing of the latest complaint, the total number of accused in the case has risen to 97, comprising individuals as well as companies, LLPs, partnership firms and proprietary concerns.
Alleged Bank Fraud of ₹6,210.72 Crore
The money laundering investigation was initiated on the basis of a first information report (FIR) registered by the Central Bureau of Investigation's (CBI) bank securities and fraud branch (BSFB), Kolkata, under various provisions of the Indian Penal Code (IPC) and the Prevention of Corruption Act (PCA).
According to the FIR, Concast Steel & Power, along with its promoters and directors, allegedly obtained credit facilities from a consortium of banks by submitting inflated stock statements, manipulating financial statements and fabricating records.
ED alleged that the loan funds were subsequently diverted and siphoned off, causing a wrongful loss of about ₹6,210.72 crore, excluding interest, to banks and financial institutions.
Alleged Network of Shell Entities
Concast Steel & Power, promoted by Mr Sureka, operated integrated steel manufacturing facilities in West Bengal, Odisha and Andhra Pradesh.
According to ED, its investigation found that Mr Sureka allegedly created and controlled more than 60 shell companies, firms and LLPs that were beneficially owned by him but operated in the names of employees, relatives, associates and dummy directors.
The agency alleged that these entities were used to divert, route and layer the proceeds of crime through accommodation entries, unsecured loans, inter-corporate transactions, fictitious trade transactions, devolved letters of credit, book adjustments and circular movement of funds before the money was allegedly integrated into immovable properties, investments and other high-value assets.
ED further alleged that several companies controlled by Mr Sureka's close associates and relatives knowingly facilitated the routing, layering and deployment of the proceeds of crime, thereby assisting the overall money laundering operation.
The agency said it had previously filed a prosecution complaint and a supplementary prosecution complaint before the Special PMLA Court in the case.
According to ED, the second supplementary prosecution complaint has been filed to place additional evidence before the court and to include newly identified individuals and entities allegedly involved in laundering the proceeds of crime.
Further investigation is underway, the agency said.
