The Enforcement Directorate (ED) has attached term deposits worth Rs 49 crore with the Karnataka Power Corporation Ltd (KPCL), in the coal block allocation case.
The ED case is that the Rs 49 crore in the form of term deposits was proceeds of sale of rejects after coal wash and attracted provisions of Prevention of Money Laundering (PML) Act.
This case was one of the several cases taken up by the CBI in the coal scam. CBI had registered the FIR against unknown officials of KPCL and others in March 2015 on charges of ignoring joint venture (JV) conditions to allow private partners gain illegal monetary benefits.
The Centre in 2003 had allocated certain coal blocks to KPCL at Wardha region in Nagpur for captive mining for power generation at Ballari Thermal Power Station. The condition was that the rejects generated during the washing of the mined coal will only be used for power generation.
After the allocation of coal blocks, KPCL formed a JV with Kolkata-based EMTA Coal Mines Ltd and a new company KECML was formed. Subsequently, KECML entrusted the washing of the mined coal to Gupta Coalfields and Washeries Ltd (GCWL).
ED states that between 2008 and 2013, a total of 8.03 lakh MTs of coal wash rejects was generated. The same was sold by GCWL and KECML in the open market in violation of the terms and regulations imposed by the Ministry of Coal during the allocation. This, according to ED, caused loss to the extent of Rs 49 crore to KPCL as well as the Union government. “Since the proceeds of this sale, in contravention of rules, was available with the KPCL in the form of term deposits, the same was attached,’’ the ED release stated.