ED attaches assets worth Rs 245 crores in State Trading Corporation fraud case

New Delhi, December 17: Taking a strict action on Saturday, the Enforcement Directorate (ED) have attached the assets worth Rs 245 crores in connection with its ongoing money laundering investigation in the alleged fraud of Rs. 2,200 crore with the State Trading Corporation (STC).

 

Notably, the Enforcement Directorate had registered a criminal case under the Prevention of Money Laundering Act (PMLA) against Global Steel Holding Limited, its chairman Pramod Kumar Mittal and others based on an FIR by the CBI earlier this year. It is alleged that Pramod Kumar Mittal committed criminal breach of trust as he failed to make payments as per terms and conditions of the agreement with State Trading Corporation (STC).

Informing its action, the investigation agency said, a proportionate share of Pramod Kumar Mittal and Global Steel Holding Ltd in Balasore Alloys Limited which includes building, plant and machinery of Balasore Alloys valued at about Rs. 245 crore has been frozen in lieu of the proceeds of crime. However, the Enforcement Directorate had earlier attached shares worth Rs. 62 crore in the name of Mittal and others in the same case.

Earlier, the State Trading Corporation alleged that the chairman of Global Steel Holding Limited committed criminal breach of trust as he failed to make payments as per terms and conditions of the agreement with it. After which the CBI case was registered from the STC.

The complaint said the STC had arranged export of raw material for new steel plants of Global Steel Philippines Inc (GSPI) in the Philippines and Bosnia, and also opened a line of credit for the company. The complaint also said had that despite irregular payments and piling up of credit, STC officials allegedly renewed a line of credit to the company.