ED attaches over Rs 1,000cr assets in Goa illegal mining case

Panaji: The enforcement directorate (ED) on Sunday provisionally attached movable and immovable properties worth Rs 1,023.9 crore of the AVS Group, including assets located in Singapore, in connection with illegal iron ore mining case.ED investigation revealed that the AVS Group, part of the Salgaocar Group and associates, operated 10 mining leases during 2007–12 and generated proceeds of crime of Rs 2,493 crore from illegal extraction, sale and export of iron ore.The agency said the illegally mined ore was exported at grossly undervalued prices to shell entities (special purpose vehicles) incorporated in the British Virgin Islands, which acted as mere paper intermediaries and resold the ore to China, generating further offshore trade profits of approximately over Rs 2,744 crore.“The total proceeds of crime work out to over Rs 5,237 crore. These funds were layered through BVI- and Singapore-based SPVs and utilised to acquire substantial movable and immovable assets abroad and partly routed back into India in the guise of share capital,” ED said.Based on an FIR registered by the Goa Police’s crime branch, the agency’s zonal office in Panaji attached the properties under the provisions of the Prevention of Money Laundering Act (PMLA).

ED said Supreme Court held that all mining undertaken in Goa after Nov 22, 2007, till the issue of fresh mining leases was illegal and without lawful authority.ED said the attached assets comprise 99 immovable properties situated in India worth over Rs 459.1 crore, 31 immovable properties situated in Singapore worth over Rs 471.3 crore and equity shares in Indian companies worth over Rs 93.4 crore, held in the names of the Estate of late Anil Vassudeva Salgaocar through its administratrix Lakshmi Anil Salgaocar, Salgaocar Mining Industries Pvt Ltd, Shantilal Khushaldas & Brothers Pvt Ltd, S Kantilal & Co Pvt Ltd, Salitho Ores Pvt Ltd, Vertex Newton Projects Pvt Ltd and Subarnarekha Port Pvt Ltd.Further investigation is in progress.