ED freezes shares worth Rs 62cr in State Trading Corporation fraud case
The Enforcement Directorate has frozen shares worth over Rs 62 crore in the name of a chairman of a steel firm in connection with its money laundering probe in the alleged fraud of Rs 2,200 crore with the State Trading Corporation (STC).india Updated: May 04, 2017 23:20 IST
The Enforcement Directorate has frozen shares worth over Rs 62 crore in the name of a chairman of a steel firm in connection with its money laundering probe in the alleged fraud of Rs 2,200 crore with the State Trading Corporation (STC).
The agency had registered a criminal case under the Prevention of Money Laundering Act (PMLA) against Ms Global Steel Holding Limited, its chairman Pramod Mittal rpt Pramod Mittal and others based on an FIR by CBI.
“ED has frozen 87,47,285 shares of Ms Balasore Alloys Limited (face value Rs 4,37,36,423) with market value of Rs 62,10,57,206 as on May 3, held by Pramod Mittal, Ms Global Steel Holding Limited and associated companies under PMLA in case of defrauding STC,” the agency said in a statement.
It said the shares have been frozen on the “reasonable belief that the same are proceeds of crime involved in money laundering.”
The CBI case had been registered on the basis of a complaint from the PSU-- State Trading Corporation (STC).
It is alleged that Mittal committed “criminal breach of trust” as he failed to make payments as per terms and conditions of the agreement with STC.
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 had stated.
It added that despite irregular payments and piling up of credit, STC officials allegedly renewed line of credit to the company. PTI NES SRY