ED raids Chennai firm, seizes Rs 360-cr FDRs

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New Delhi, April 27

The Enforcement Directorate today said it had seized Rs 360 crore worth of fixed deposits of a company of the Chennai-based Chettinad Group after it raided 10 locations belonging to it and state public sector unit Tamil Nadu Generation and Distribution Corporation (TANGEDCO).

The raids were conducted on April 24 in connection with a money laundering investigation linked to alleged “cheating by TANGEDCO by claiming excessive payments for coal transportation from the Vishakhapatnam Port, which amounted to hundreds of crores”.

The ED registered its case under provisions of the prevention of Money laundering Act (PMLA) on the basis of an FIR of the Tamil Nadu directorate of vigilance and anti-corruption bureau.

Raids were carried out by the ED at 10 premises of South India Corporation (SIC), a group company of the Chettinad Group, TANGEDCO, a former director (coal) of TANGEDCO, some government officials and key management personnel of SIC and Western Agencies (Madras) Pvt. Ltd.

Incriminating documents, including digital evidence and property papers, were seized apart from the seizure of Rs 360 crore worth of fixed deposits in the accounts of South India Corporation, the ED said, alleging that the “loss” to TANGEDCO occurred between 2001 and 2019, in connivance with officials of the state PSU.

“The initial tender awarded for six months was extended for 19 years based on an injunction petition filed by one of the related parties,” it said. The Income Tax Department had searched the company in December 2020 and claimed to have detected tax evasion of more than Rs 700 crore.