ED attaches over ₹1,000cr assets in Goa 'illegal' mining case
What's the story
The Enforcement Directorate (ED) has attached assets worth over ₹1,023 crore in connection with an alleged illegal iron ore mining case in Goa. The assets include properties in Singapore and are linked to the Salgaocar Groups and their associates (AVS Group). A provisional order was issued on June 19 under the Prevention of Money Laundering Act (PMLA).
Probe details
ED's probe based on Goa Police CID FIR
The ED's investigation was initiated after a First Information Report (FIR) by the Goa Police Crime Investigation Department (CID). The agency alleged that the Supreme Court had ruled in 2014 and 2018 that all mining activities in Goa after November 22, 2007, were illegal until new leases were issued. The AVS Group allegedly operated 10 mining leases between 2007 and 2012.
Financial crimes
Total proceeds of crime estimated at ₹5,237.84 crore
The ED claims that the AVS Group made ₹2,492.95 crore from illegal iron ore mining, sale, and export. The illegally mined ore was allegedly exported at "grossly undervalued" prices to shell entities in the British Virgin Islands (BVI). These entities sold the ore to China, bringing in an additional ₹2,744.89 crore in offshore trade profits. The total proceeds of crime are estimated at ₹5,237.84 crore by the agency.
Money laundering
Funds layered through BVI and Singapore-based special purpose vehicles
The ED alleged that these funds were layered through BVI and Singapore-based Special Purpose Vehicles (SPVs). The money was used to buy huge movable and immovable assets abroad and partially routed back into India as share capital. The attached assets include 99 properties in India worth ₹459.10 crore, 31 properties in Singapore worth ₹471.32 crore, and equity shares worth ₹93.42 crore held by various companies associated with the Salgaocar family.