ED attaches ₹24.60 crore Rourkela mall property in PEC loan fraud case

It matters to citizens as it details a significant enforcement action regarding alleged fraud and money laundering involving a Government of India enterprise and private companies.

Who it concerns: The document concerns M/s Maa Tarini Industries Limited (MTIL), M/s Tathagat Exports Private Limited (TEPL), M/s Pluto Plaza Private Limited, Hanuman Khedaria, officials of PEC Limited, the Central Bureau of Investigation (CBI), and the Directorate of Enforcement (ED).

What the ED says it did

• ED provisionally attached immovable property worth Rs. 24.60 Crore under PMLA, 2002.
• The attached property consists of the Ground Floor, First Floor, and part of the Second Floor of Pluto Plaza Mall in Rourkela, Odisha, registered in the name of M/s Pluto Plaza Private Limited.
• ED investigation was initiated based on an FIR registered by CBI, ACB, Bhubaneswar, under the Indian Penal Code, 1860, and the Prevention of Corruption Act, 1988.
• It was alleged that MTIL fraudulently obtained Rs. 19.40 Crore from PEC Limited for iron ore procurement by misrepresenting its financial position and concealing asset charges.
• Related company TEPL availed Rs. 16 Crore from PEC Limited, with a total outstanding liability of approximately Rs. 56.89 Crore (including interest) when the loan became NPA.
• ED found that funds were diverted to pay share purchase consideration to erstwhile shareholders of MTIL, including Hanuman Khedaria.
• Hanuman Khedaria and associated entities received proceeds of approximately Rs. 15.31 Crore, which amounted to Rs. 24.60 Crore including interest.
• The attached property is considered value equivalent to the proceeds of crime.

Also in the document

• The case involves PEC Limited, identified as a Government of India enterprise.
• The FIR was registered by CBI, ACB, Bhubaneswar.
• Further investigation is stated to be under progress.