ED Seizes Rs 2.2 Crore Assets in Goa Mining Money Laundering Probe
The Enforcement Directorate (ED) in Goa has taken decisive action by provisionally attaching three immovable properties valued at approximately Rs 2.2 crore. This move targets a local mining company embroiled in an alleged money laundering case, with the assets believed to represent proceeds of crime acquired through fraudulent activities.
Details of the Attached Properties
The attached properties include two land parcels located in Galel, Sawantwadi, Maharashtra, and a residential flat situated in Andheri (West), Mumbai. According to the ED, these assets were purchased in the names of the accused using funds illicitly obtained from a Chinese mining firm.
Background of the Case
The investigation stems from a First Information Report (FIR) registered by the Economic Offences Cell of the Goa Police. The case involves allegations of cheating and criminal breach of trust against Jiwa Mines & Minerals Ltd and other entities. In 2017, Goa Police filed the FIR following directives from the Judicial Magistrate First Class in Vasco, after a complaint from the Chinese company, Lao Ting Dadi Mobile Components Co Ltd.
The core of the accusation revolves around a joint venture agreement for iron ore mining and export. The accused allegedly lured the Chinese firm into this partnership by making false assurances and misrepresentations regarding ownership and mining rights. Despite receiving substantial payments totaling around Rs 13.42 crore in 2010 for mining operations, no actual excavation or export activities were ever conducted.
Modus Operandi of the Fraud
As per the Memorandum of Understanding (MoU), the Goa-based company was supposed to supply iron ore excavated from a mine in Galel, Sindhudurg, Maharashtra. The agreement stipulated that upon receiving photographic evidence of ore excavation, Lao Ting Dadi Mobile Components Ltd would transfer funds as payment.
However, the accused firm reportedly sent random pictures of ore excavation to the Chinese company, prompting immediate fund transfers. When the Chinese delegation visited the mine site, they discovered that no mining was taking place, exposing the deceit.
ED's Investigation Findings
The ED's probe revealed a systematic scheme of fund diversion. Bank trail analysis confirmed that the cheated money was layered and utilized for personal enrichment, including the acquisition of the now-attached immovable properties. The agency emphasized that these properties are directly linked to the proceeds of crime generated from the cheating incident.
This case highlights ongoing efforts by Indian authorities to combat financial crimes and money laundering in the mining sector, with the ED acting under the provisions of the Prevention of Money Laundering Act (PMLA). The attached properties will remain under provisional attachment as the legal proceedings continue.
