New Delhi, 21 June (H.S.):

The Enforcement Directorate (ED) has taken major action in the Goa illegal iron ore mining case by provisionally attaching movable and immovable assets worth Rs 1,023.85 crore linked to the Salgaocar Group and its associates, collectively known as the AVS Group. The action has been taken under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

The ED's Panaji Zonal Office issued the provisional attachment order on June 19. The attached assets include 99 immovable properties in India valued at Rs 459.10 crore, 31 immovable properties in Singapore worth Rs 471.32 crore, and equity shares in Indian companies valued at Rs 93.42 crore.

The attached properties are registered in the names of the estate of the late Anil Vasudev Salgaocar, represented through its administratrix Mrs. Lakshmi Anil Salgaocar, M/s Salgaocar Mining Industries Private Limited, M/s Shantilal Khushaldas & Brothers Private Limited, M/s S. Kantilal & Company Private Limited, M/s Salitho Ores Private Limited, M/s Vertex Newton Projects Private Limited, and M/s Suvarnarekha Port Private Limited.

The ED stated that its investigation was initiated on the basis of a First Information Report (FIR) registered by the Crime Branch of the Goa Police CID under the provisions of the Indian Penal Code (IPC), the Prevention of Corruption Act, and the Mines and Minerals (Development and Regulation) Act (MMDR Act).

The agency further noted that, in its judgments dated April 21, 2014, and February 7, 2018, the Supreme Court had categorically held that all mining activities carried out in Goa after November 22, 2007, until the grant of fresh mining leases, were illegal and without any legal authority.

According to the ED's investigation, the AVS Group operated a total of ten mining leases between 2007 and 2012 and generated proceeds of crime amounting to approximately Rs 2,492.95 crore through the illegal extraction, sale and export of iron ore.

The illegally extracted ore was allegedly exported at heavily undervalued prices to shell companies incorporated in the British Virgin Islands (BVI). These intermediary entities subsequently sold the ore to buyers in China, generating an additional foreign trade profit of approximately Rs 2,744.89 crore.

The total proceeds of crime in the case have been estimated at approximately Rs 5,237.84 crore.

According to the ED, the illicit proceeds were used to acquire movable and immovable assets abroad through shell companies based in the British Virgin Islands and Singapore. A portion of these funds was also routed back to India in the form of share capital investments.

Further investigation into the case is currently underway.

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Hindusthan Samachar / Jun Sarkar