ED attaches ₹117 cr properties of firm for furnishing wrong details

CHANDIGARH: : The Enforcement Directorate (ED) has attached movable and immovable properties worth ₹117 crore of a mining company, Prakash Industries Ltd, for furnishing wrong details to secure allocation of the Fatehpur coal block in Chhattisgarh.

The company, which is facing multiple cases, was also accused of furnishing false information to the Bombay Stock Exchange (BSE) and artificially creating a rise in its share prices.

While the probe in the cases is still on, these properties have been attached as “crime proceeds”.

As per the CBI FIR, the firm had applied to the ministry of coal for allocation of the coal block in January 2007.

On the basis of the application, the Fatehpur coal block was allocated to the company in February 2008. The allocation was cancelled in 2014 after it was found that the firm filed false net worth details in the application. On the basis of the FIR, Enforcement Directorate (ED) filed a case in August 2014.

As a result of filing of false declaration to Bombay Stock Exchange (BSE), the company’s shares saw an astronomical rise in value.

The company in order to encash this artificially created rise issued 62.50 lakh preferential shares on premium of ₹180 per share and sold these to five companies and earned ₹118.75 crore as share capital.

Further probe found that the firm used these earnings for expansion of its manufacturing activities. The CBI in the probe had claimed that the screening committee deliberately turned a blind eye to the wrong details filed by the company to give it undue favour for coal block allocation.