In this case, ED had earlier attached properties worth Rs 3.91 crore by issuing two provisional attachment orders under the Prevention of Money Laundering Act, 2002 (PMLA), which were duly confirmed by the Adjudicating Authority under PMLA.
ED initiated investigation under PMLA based on the four First Information Reports (FIRs) and charge sheets filed by Anti-Corruption Branch of the Central Bureau of Investigation (CBI), Ranchi against Classic Coal Constructions.
The CBI had also booked Pawan Kumar Singh (since expired), the erstwhile Managing Director of Classic Coal Constructions; Dilip Kumar Singh, another Director of the firm; 22 Engineers of Road Construction Department of Jharkhand government and two others for the offences of cheating and criminal misconduct.
The company was mandated to procure bitumen from the government undertaking oil companies like HPCL, IOCL and BPCL which was not done, the ED said. “In sheer violation of legal procedure, the directors of the company submitted 492 fake or forged invoices pertaining to HPCL, Ramnagar, West Bengal, to the Road Construction Department, showing procurement of 4630 Metric Tonne of bitumen for road works and got payment in connivance with the departmental engineers on the strength of these fake or forged bills to the tune of Rs 6.88 crore.
Investigation under PMLA revealed that this allegedly ill-gotten money was used to create assets and to meet miscellaneous expenditure pertaining to the company and its directors, said the ED.
Two Prosecution Complaints against the firms and their Directors were filed on March 31, 2018 and November 24 last year respectively before the Special Court, PMLA, Ranchi, wherein the trial is under progress. “Further investigation is in progress.”