Major Asset Seizure Linked to Chhattisgarh Coal Block Scam

The Enforcement Directorate has seized Rs 1,000 crore in assets from a company accused of fraudulently acquiring coal blocks in Chhattisgarh. The money laundering case, linked to a CBI investigation, alleges misuse of funds and fraudulent transactions involving RKM Powergen Private Limited.

In a significant development, the Enforcement Directorate (ED) has announced the seizure of assets worth Rs 1,000 crore, following searches at a Chennai-based company accused of fraudulently acquiring coal blocks in Chhattisgarh.

The raids targeted the premises of RKM Powergen Private Limited (RKMPPL) and its affiliates, including individuals such as Andal Arumugam and S. Arumugam, under the Prevention of Money Laundering Act. The ED's action stems from a CBI case alleging wrongful acquisition of the Fatehpur East Coal Block, allocated by the Ministry of Coal.

It is alleged that project funds were misappropriated and laundered through foreign entities, leading to financial misconduct. A sum of Rs 912 crore in fixed deposits and mutual funds has been frozen, and crucial evidence seized, marking a critical step in uncovering financial irregularities in coal block allocation.