ED attaches over Rs 298-cr assets of Chettinad group company

New Delhi: The Enforcement Directorate on Saturday said it has attached assets worth more than Rs 298 crore of a group company of the Chennai-based Chettinad group as part of a money laundering investigation. The ED case, registered under the Prevention of Money Laundering Act (PMLA), stems from a complaint of the Directorate of Vigilance and Anti-Corruption (DVAC) against former officials of the Tamil Nadu Generation and Distribution Corporation(TANGEDCO), Chennai, and the South India Corporation Pvt Ltd. (SICPL).

In a statement, the federal agency said in 2001, the contract for handling coal at the Visakhapatnam port during its transportation via rail-sea-rail route was awarded to SICPL for a period of five months.

However, even before opening of the bids in the tender, Western Agencies Madras Pvt Ltd. filed a civil suit before a Chennai court and the court had ordered time-to-time injunction till 2019, it said.


The SICPL paid an amount of Rs 217.31 crore as levy to Visakhapatnam Port Trust for the period between 2011-12 and 2018-19, whereas TANGEDCO paid an amount of Rs 1,126.10 crore to SICPL as reimbursement of levy.

"Thus, difference between the above said amount, that is Rs 908.79 crore was the loss caused to TANGEDCO and wrongful gain to the SIC Ltd," the ED said.

A provisional order has been issued to attach assets worth Rs 298.21 crore SICPL, a group company of the Chettinad Group.