ED Freezes Rs 298.21 Crore of South India Corporation Ltd in Chennai
The Directorate of Enforcement (ED) in Chennai has provisionally attached immovable properties worth Rs 298.21 crore of M/s. South India Corporation Ltd. (SICPL), a group company of M/s. Chettinad Group, under the Prevention of Money Laundering Act (PMLA), 2002.
The investigation was initiated based on an FIR registered by the Directorate of Vigilance and Anti-Corruption (DVAC), Chennai, against former officials of Tamil Nadu Generation and Distribution Corporation (TANGEDCO) and SICPL.
In 2001, SICPL was awarded a contract for handling coal at Vizag Port for five months. However, a civil suit filed by M/s Western Agencies Madras Pvt Ltd. led to court injunctions until 2019.
SICPL paid Rs 217.31 crore to Vishakapattinam Port Trust between 2011-2019, while TANGEDCO reimbursed Rs 1126.10 crore to SICPL, resulting in a loss of Rs 908.79 crore to TANGEDCO.
In April 2023, ED conducted searches on SICPL premises, freezing Rs 358.20 crore in fixed deposits. Further investigation is ongoing.
Doubts Revealed
ED -: ED stands for the Directorate of Enforcement. It is a government agency in India that investigates financial crimes like money laundering.
Rs 298.21 Crore -: Rs 298.21 Crore is a large amount of money. One crore is equal to ten million, so 298.21 crore is 2,982,100,000 rupees.
South India Corporation Ltd -: South India Corporation Ltd (SICPL) is a company that is part of the Chettinad Group, which is a big business group in India.
Chennai -: Chennai is a large city in the southern part of India. It is the capital of the state of Tamil Nadu.
Prevention of Money Laundering Act -: The Prevention of Money Laundering Act is a law in India that helps to stop people from hiding money that they got illegally.
FIR -: FIR stands for First Information Report. It is a document prepared by the police when they receive information about a crime.
Directorate of Vigilance and Anti-Corruption -: The Directorate of Vigilance and Anti-Corruption is a government agency in Tamil Nadu that fights corruption and keeps an eye on government officials.
Financial discrepancies -: Financial discrepancies mean that there were mistakes or wrongdoings in the way money was handled.
Tamil Nadu Generation and Distribution Corporation (TANGEDCO) -: TANGEDCO is a company that provides electricity to people in Tamil Nadu.
Vishakapattinam Port Trust -: Vishakapattinam Port Trust is an organization that manages the port in Vishakapattinam, a city in Andhra Pradesh, India.
Reimbursed -: Reimbursed means to pay back money that was spent or lost.