The Enforcement Directorate (ED) has taken major action in the illegal iron ore mining case in Goa. ED has temporarily attached assets worth Rs 1023.85 crore of Salgaocar Group and its associated companies. These also include properties worth Rs 471 crore in Singapore. On Sunday (June 21), ED said that on June 19, a provisional order of attachment was issued under the Prevention of Money Laundering Act (PMLA).
According to ED, this action has been taken against Salgaocar Group and its associated AVS Group in the case of large-scale illegal iron ore mining and alleged illegal properties acquired from it. The seized assets include immovable properties located in India as well as Singapore.
99 real estate properties in India, 31 in Singapore
According to the ED, the seized assets include 99 immovable properties in India (Rs 459.10 crore), 31 immovable properties in Singapore (Rs 471.32 crore) and equity shares in Indian companies (Rs 93.42 crore). These properties are owned by the Estate of Late Anil Salgaocar (through his administrator Lakshmi Anil Salgaocar), Salgaocar Mining Industries, Shantilal Khushaldas & Brothers, S. The names were Kantilal & Company, Salitho Ors, Vertex Newton Projects and Subarnarekha Port. The total value of these properties is said to be Rs 1,023.85 crore.
Investigation started on CID’s FIR
The investigation of money laundering started with the FIR of CID of Goa Police. ED said that the Supreme Court, in its judgments of 2014 and 2018, had held that all mining done in Goa after November 22, 2007 (until the new mining lease was issued) was illegal. The agency alleges that its investigation found that AVS Group operated ten mining leases during 2007-12 and made illegal proceeds (proceeds of crime) of Rs 2,492.95 crore from illegal extraction, sale and export of iron ore.
exported at low prices
Illegally extracted iron ore was exported at very low prices to shell companies (special purpose vehicles) based in the British Virgin Islands. These companies used to work only on paper. Then it was sold again to China, thereby earning an additional profit of Rs 2,744.89 crore. According to the agency, the total amount received from crime has been estimated at Rs 5,237.84 crore.
The ED alleged that these funds were distributed at multiple levels through SPVs based in the British Virgin Islands (BVI) and Singapore, which were used to purchase movable and immovable properties abroad. And some part was sent back to India in the form of share capital. Of these, 99 properties are in India and 31 properties are in Singapore, which have been confiscated.
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