ANI
05 Dec 2018, 04:37 GMT+10
New Delhi, (India), Dec 4, (ANI): The Enforcement Directorate (ED) on Tuesday attached around Rs. 117.09 crore movable and immovable properties of M/S Prakash industries under Prevention of Money Laundering Act (PMLA), 2002 in connection with the allocation of coal block on Tuesday.
A press release from the Enforcement Directorate read, "It was found that the proceeds of crime had been generated and used in the continuous expansion related to manufacturing activities, therefore the value of Rs. 117.09 crore was attached in the form of movable and immovable properties of the company under the provisions of Prevention of Money Laundering Act, 2002."
The investigation by the Enforcement Directorate revealed that Prakash Industries filed a false declaration with the Bombay Stock Exchange (BSE) on November 17, 2007, while the coal block was actually allocated on February 2, 2008 jointly to M/s Prakash Industries and M/s Ispat Power Ltd.
The financial watchdog, in its statement, further added that as a result of this false declaration the shares of M/s Prakash Industries recorded an astronomical rise in their value. "At one point in time i.e. on April 2, 2007, the share price was Rs. 31 per share whereas on January 4, 2008, the share price was Rs. 351 per share," the ED said.
An investigation by the ED revealed that the company in order to encash the artificially created rise in their share value issued 62,50,000 preferential shares on a premium of Rs.180 per share and sold these shares to five selected companies and in the process generated Rs. 118.75 crores in the form of share capital.
In 2014, the Central Bureau of Investigation (CBI) had filed an FIR against the company alleging that it had applied to the Ministry of Coal for a CX allocation of coal block. In the application, it was found that the net worth details were false.
Following the FIR, the ED had registered an Enforcement Case Information Report (ECIR) on August 30, 2014. (ANI)
Get a daily dose of Illinois Intelligencer news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Illinois Intelligencer.
More InformationWashington [US] Feb 21 (ANI): United States President Donald Trump on Wednesday said that it is totally up to Attorney ...
Washington D.C. [USA], Feb 20 (ANI): While travelling solo is something that a lot of people may dread, mainly for ...
Moscow [Russia], Feb 20 (ANI): Russian President Vladimir Putin on Wednesday reinforced that Moscow would deploy "tit-for-tat and asymmetric measures" ...
Iranian Foreign Minister Mohammad Javad Zarif says the reports of the Trump administrations plan to illicitly sell nuclear technology to ...
Tensions between Tehran and Washington are at 'a maximum' rarely seen in the decades-long antagonistic relations between the two countries, ...
Washington D.C. [USA], Feb 20 (ANI): United States President Donald Trump on Tuesday (local time) said he is in "no ...
MONTPELIER, Vermont - Soon after announcing he is having another tilt at the presidency, U.S. Senator Bernie Sanders has named a ...
NEW YORK, New York - The FBI began an investigation into whether U.S. President Donald Trump was a Russian agent, ...
PERTH, Western Australia - An international drug ring operating in the West Australian capital of Perth has been dismantled. In ...
WASHINGTON DC - A U.S. Congressional committee is exploring whether the Trump administration is planning to provide Saudi Arabia with ...
The peace agreement signed by 15 warring parties in the Central African Republic has been hailed by the UN Children’s ...
WASHINGTON DC - U.S. President Donald Trump has called on the Venezuelan military to abandon their president, and to throw ...
DUBLIN, Ireland - Following its successful acquisition of Hollywood-based Blindlight, Irish video-gaming company Keywords Studios has now announced its latest accomplishment. Keywords r ...
Read More