ED Attaches Properties Worth Rs 298.21 Crore of Chettinad Group Company

The Directorate of Enforcement (ED) in Chennai has provisionally attached immovable properties worth Rs 298.21 crore belonging to South India Corporation Ltd. (SICPL), part of Chettinad Group. The action is under the Prevention of Money Laundering Act (PMLA), based on an FIR from the Directorate of Vigilance and Anti-Corruption (DVAC).

The Directorate of Enforcement (ED) in Chennai has taken provisional action to attach immovable properties worth Rs 298.21 crore, associated with M/s. South India Corporation Ltd. (SICPL), a subsidiary of the Chettinad Group. This action falls under the Prevention of Money Laundering Act (PMLA) of 2002, according to an official release on Saturday.

The ED's investigation began after the Directorate of Vigilance and Anti-Corruption (DVAC) in Chennai filed an FIR detailing various sections of the Indian Penal Code and the Prevention of Corruption Act against former officials of Tamil Nadu Generation and Distribution Corporation (TANGEDCO) and SICPL. The investigation uncovered that in 2001, a contract was awarded to SICPL for a five-month period to handle coal at Vizag Port during its rail-sea-rail transportation route. However, a civil suit filed by Western Agencies Madras Pvt Ltd. resulted in an injunction that lasted until 2019, according to the ED.

The ED revealed that between 2011-12 and 2018-19, SICPL paid approximately Rs 217.31 crore as levy to Vishakapattinam Port Trust, while TANGEDCO reimbursed SICPL around Rs 1126.10 crore, leading to a discrepancy of Rs 908.79 crore, which constituted a loss for TANGEDCO and an undue gain for SICPL. In April 2023, searches at various SICPL premises resulted in the freezing of Rs 358.20 crore held in fixed deposits. Further investigations are ongoing, the ED added.

(With inputs from agencies.)