The agency seized Balasore Alloys's property in which Mittal and GSHL are holding 30.35 per cent shareholding through various Indian and foreign promoter and investment companies under the Prevention of Money Laundering Act.
"Mittal and GSHL's share in Balasore Alloys includes building, plant and machinery totalling approximately Rs 244.89 crore which has been attached in lieu of the proceeds of crime," an ED statement said.
The ED filed a money laundering case on March 29 against Mittal, GSHL and State Trading Corporation (STC) officials following an FIR registered by the Central Bureau of Investigation on March 16.
In its investigation, the CBI found that GSHL had sought a financing facility from the STC which agreed to finance the company without checking its financial condition.
"GSHL availed financing facility for purchase of raw material for their Philippines-based steel plants on cash and carry basis. As per the agreement, raw material and goods had to be lifted only upon payments to STC whereas raw material was supplied despite payments not being made.
"Thus, GSHL was favoured by violating Reserve Bank of India guidelines, and STC exposed itself to financial risk despite default in payment from the associates continued the transactions. The total default mounted up to Rs 2,112 crore approximately," the statement said.
Mittal is alleged of committing criminal breach of trust as he failed to make payments as per terms and conditions of the agreement with STC.
Despite irregular payments and piling up of credit, STC officials allegedly renewed line of credit to the company while the cheques given by GSHL and its Philippines-based subsidiary to STC were allegedly dishonoured resulting in loss of Rs 2,112 crore to the public sector undertaking.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
Doraiah Chowdary Vundavally is a Software engineer at VTech . He is the news editor of SocialNews.XYZ and Freelance writer-contributes Telugu and English Columns on Films, Politics, and Gossips. He is the primary contributor for South Cinema Section of SocialNews.XYZ. His mission is to help to develop SocialNews.XYZ into a News website that has no bias or judgement towards any.
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